Samsung Electronics has completed the acquisition of Harman International Industries in a deal worth $8 billion, the company announced.
Harman stockholders will receive $112 per share in cash, and the deal was approved by the US firm’s stockholders and local and foreign regulators, the Korean company said.
Harman will be 100 percent owned by Samsung, while Dinesh Paliwal will remain as Harman’s CEO. The company’s workforce, headquarters, facilities, and its brands will be retained. Stock will cease trading and be delisted from the New York Stock Exchange until market open on March 13.
The acquisition will make the South Korean tech giant immediately a tier-1 parts supplier to global car makers that use Harman infotainment components such as GM.
Samsung will leverage Harman’s networks to likely expand its supply of displays and semiconductors to cars.
“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, and chairman of the board of Harman, in a statement.
“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.
“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,” said Paliwal, also in a statement.
“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,” Paliwal added. “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.
“Working closely with automakers and other technology companies, Samsung and Harman will define — and drive — the future of automotive.”
The South Korean tech giant’s merger of the US auto and audio parts giant was first revealed in November last year.