Jordan O'BrienSamsung has officially completed the acquisition of Harman, bringing on-board the automotive and audio manufacturer’s diverse range of brands and divisions. Under the terms of the acquisition, Harman shareholders receive $112 per share in cash, valuing the company at $8 billion.
Harman is officially Samsung’s largest acquisition to date, but the electronics giant had numerous reasons to pursue the deal. The automotive division was a key selling point for Samsung, although the company also sees growth opportunities in the audio market – with both commercial and residential opportunities set to be explored.
“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,” says Young Sohn, president and chief strategy officer of Samsung Electronics, and chairman of the board, Harman.
“We see transformative opportunities in the car – and a future which seamlessly connects lifestyle across automotive, home, mobile and work. Samsung’s and Harman’s leadership in these spaces perfectly positions Samsung to be the preferred partner to our OEM customers. In addition, bringing together Harman’s iconic audio brands and capabilities paired with Samsung’s leading display technologies will deliver enhanced audio and video experiences to consumers and professional end markets. And most importantly, we are enthusiastic about our common vision, the similarities in our culture of innovation, and the added value we can create for customers. We look forward to working with all of Harman’s employees to execute on our vision.”
Harman’s entire suite of brands are now part of Samsung, which includes the likes of AKG, JBL, Harman Kardon, Mark Levinson and Revel. It’s likely that Samsung will all those brands to work, with the company already having a stake in both the residential and commercial AV markets.
Samsung hasn’t yet confirmed its intentions for the brands, whether it keeps them as is, or chooses to merge the audio namesakes with each other. The synergies available between the companies is clear, however. Samsung had already partnered with Harman Kardon on a PC-cum-speaker, while the company’s position as the number one TV manufacturer will likely help bring better sound quality to TVs everywhere.
“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,” adds Dinesh Paliwal, Harman president and CEO.
“Samsung shares our commitment to our customers and our culture of speed, innovation and execution. Samsung provides Harman with the scale, platform and complementary technologies to accelerate growth and extend our global market leadership in automotive, smart audio and connected technologies. Recognising 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. Working closely with automakers and other technology companies, Samsung and Harman will define – and drive – the future of automotive.”