Post months of waiting and opposition from stakeholders, Samsung has today finally closed its Harman acquisition. Under the merger agreement, Harman stockholders will receive $112 per share in cash as announced by the company while declaring the incorporation. Moreover, the mammoth $8 billion deal has been approved by both US firm’s stockholders and local/foreign regulators.
Following the takeover, Harman International Industries, Incorporated (“HARMAN”) will be delisted from the New York Stock Exchange and hence the trading will conclude prior to market open on March 13, 2017. Harman is now a fully owned by Samsung, with Dinesh Paliwal as its CEO. Paliwal served as the CEO for Harman even before the acquisition. Now, the said subsidiary will be managed and supervised by a Board of Directors led by the latter himself.
The merger talks began in November, the last year with Samsung looking to further its push into connected mobility segment. The company had then announced the acquisition of prominent audio tech company in an all-cash transaction, valued at $8 billion. The Korean giant will now provide Harman with the scale, platform and complementary technologies to accelerate growth and extend their global market leadership in automotive, smart audio, and connected technologies.
Declaring the conclusion of the deal, Paliwal said,
We are excited to have completed the transaction, which provides compelling cash value to our stockholders, benefits our customers, and provides new opportunities for our employees. Recognizing the importance of partnerships in an increasingly connected world, particularly in automotive, we are poised to leverage our combined teams and resources to produce even greater value for our customers.
Apart from its CEO, Samsung is preserving the existing workforce for the company coupled with its headquarters and other facilities. The Korean giant will even continue to use the brand name ‘HARMAN’ for its future products.
Hence, the alliance crowns Samsung as the Global supply leader for tier-1 parts, outsourced by leading automobile companies around the world. These automobile makers, namely BMW, GM, Audi and others integrate Harman infotainment systems in their vehicles.
Announcing the completion of this significant acquisition, Young Sohn, President and CSO of Samsung Electronics, and Chairman of the Board for Harman said,
Today is a historic moment for us. The close of this transaction opens the door to create substantial growth opportunities and deliver greater benefits for customers worldwide.
Working closely with automakers and other technology companies, Samsung and Harman will hence define — and drive — the future of automotive with their fresh collaboration.
Simran is The Tech Portal’s newest member, and has a keen interest in covering enterprise tech and app tech. She reports from our HQ @ Jaipur, India.