Samsung Electronics Co., Ltd. announced it has completed the previously announced acquisition of Harman International Industries, Incorporated. Under the terms of the merger agreement, Harman stockholders will receive US$ 112.00 per share in cash.
The completion follows the satisfaction of all conditions to the closing of the transaction, including approval of the transaction by Harman stockholders and receipt of all necessary regulatory approvals in the United States and certain foreign jurisdictions.
Upon closing, the transaction will immediately give Samsung a significant presence in the large and rapidly growing market for connected technologies, particularly automotive electronics, which has been a strategic priority for Samsung, and is expected to grow to more than US$ 100 billion by 2025.
Harman is the market leader in connected car solutions, with more than 30 million vehicles currently equipped with its connected car and audio systems, including embedded infotainment, telematics, connected safety and security.
The company owns three productions sites in Mexico, located in the cities of Tijuana, Juarez and Queretaro.
Approximately 65% of Harman’s US$ 7.0 billion of reported sales during the 12 months ended September 30, 2016 are automotive-related, and its order backlog for this market at June 30, 2016 was approximately US$ 24 billion.
“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,” said Young Sohn, President and Chief Strategy Officer of Samsung Electronics. “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.”
“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,” said Dinesh Paliwal, Harman President and CEO.
In connection with the completion of the transaction, Harman’s common stock will cease trading prior to market open on March 13, 2017 and will be delisted from the New York Stock Exchange. Harman will operate as a standalone Samsung subsidiary, overseen by a Board of Directors led by Mr. Sohn. Mr. Paliwal will remain CEO of Harman, leading the Company with his management team, and will continue to serve as a member of its Board.
Samsung plans to retain Harman’s work force, headquarters and facilities, as well as all of its consumer and professional audio brands.