Samsung acquires HARMAN for $8 billion
Samsung Electronics has announced a deal with HARMAN that will see the Korean giant purchase the parent company of JBL and AMX for $112 per share in cash, or a total equity value of approximately $8 billion.
The transaction will immediately give Samsung a significant presence in the large and rapidly growing market for connected technologies.
“HARMAN perfectly complements Samsung in terms of technologies, products and solutions, and joining forces is a natural extension of the strategy we have been pursuing for some time,” says Samsung Electronics vice chairman and chief executive officer Oh-Hyun Kwon.
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Dinesh Paliwal, HARMAN chairman, president and CEO, adds, “This compelling all-cash transaction will deliver significant and immediate value to our shareholders and provide new opportunities for our employees as part of a larger, more diversified company. This announcement is a testament to what we have achieved and the value that we have created for shareholders.”
Samsung expects the combination to deliver significant growth opportunities and benefits to customers by leveraging Samsung’s and HARMAN’s complementary technologies, resulting in increased market penetration across important end markets.
HARMAN’s leading brands include JBL, Harman Kardon, Mark Levinson, AKG, Lexicon, Infinity and Revel. The company also licenses Bowers & Wilkins and Bang & Olufsen brands for automotive. All of these brands will greatly enhance the competitiveness of Samsung’s mobile, display, virtual reality and wearable products to deliver a fully differentiated audio and visual experience for customers.
Samsung will also gain access to HARMAN’s 8,000 software designers and engineers who are working in the IoT market. This collaboration is expected to deliver the next generation of cloud-based consumer and enterprise experiences, as well as end-to-end services for the automotive market through the convergence of design, data and devices.
The agreement has been unanimously approved by the boards of directors of both companies.
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