Samsung Electronics has completed the previously announced acquisition of Harman International Industries, Inc. Harman will operate as a standalone Samsung subsidiary, overseen by a Board of Directors led by Young Sohn, President/Chief Strategy Officer of Samsung. Dinesh Paliwal will remain as CEO of Harman, leading the company with his management team, and will continue to serve as a member of its Board. Samsung is retaining Harman’s work force, headquarters and facilities, as well as all of its consumer and professional audio brands.
Samsung To Acquire Harman – Reported on November, 2016
Samsung Electronics has agreed to acquire Harman International for $8 billion, cashing in at $112 per share.
According to Samsung, the acquisition’s purpose was to expand their presence in the connected technologies market, which is projected to grow more than $100 billion by 2025, but the clear motivation behind the deal was accessing Harman’s automotive technology. Approximately 65% of Harman’s $7 billion of reported sales in the last 12 months was automotive-related, pertaining to embedded infotainment, telematics, connected safety and security.
Harman’s brands and audio systems include AMX, Soundcraft, BSS and Martin Professional. These brands are expected to bolster Samsung’s mobile, display, virtual reality and wearable products.
The deal expands the combined company’s business-to-business platform through its ability to deliver integrated, large-scale audio and visual professional solutions at stadiums, concert facilities and other performance centers.
Samsung will also gain access to Harman’s workforce of 8000 software designers and engineers, who are dedicated to the IoT market.
According to Samsung, they are pursuing a long-term growth strategy in automotive electronics, and plan to retain Harman’s work force, headquarters and facilities, as well as all of its consumer and professional audio brands. Samsung believes the combination will increase career development and advancement opportunities for the employees of both companies.
Upon closing, Harman will operate as a standalone Samsung subsidiary. It will continue to be led by Dinesh Paliwal and Harman’s current management team.