Harman International Industries is a market leader in the motor vehicle industry when it comes to in-cabin equipment such as infotainment and audio system. An industry that Samsung Electronics forecast to grow to over $100 billion by the year 2025.
It would appear, Samsung want a piece of this action, and has officially disclosed that it intends to acquire the U.S.-based Harman for $112 per share in cash, or total equity share worth $8 billion. The acquisition will also include all the subsidiary companies under Harman International.
“Harman perfectly complements Samsung in terms of technologies, products, and solutions, and joining forces is a natural extension of the automotive strategy we have been pursuing for some time.” Said Oh-Hyn Kwon, the vice chairman and CEO of Samsung Electronics.
His counterpart, Dinesh Paliwal, the Chairman, President, and CEO of Harman said, “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. Today’s announcement is a testament to what we have achieved and the value that we have created for shareholders. Samsung is an ideal partner for Harman and this transaction will provide tremendous benefits to our automotive customers and consumers around the world.”