Samsung finalises Harman acquisition
Electronics giant completes £8bn deal for the AKG, Crown, JBL, Soundcraft and Studer parent company.
Samsung Electronics has completed its acquisition of Harman International Industries in an $8 billion deal – the company's biggest ever purchase.
Under the terms of the merger agreement, Harman stockholders will receive $112 per share in cash.
The completion follows the satisfaction of all conditions that needed to be met before the closing of the transaction, including approval by Harman stockholders and receipt of all necessary regulatory approvals in the United States and certain foreign jurisdictions.
“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 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.”
“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," added Young Sohn, president and chief strategy officer for Samsung Electronics, and now chairman of the Harman Board. "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.”
As a result of the deal's conclusion, Harman’s common stock has been delisted from the New York Stock Exchange. Harman will now operate as a standalone Samsung subsidiary, overseen by a Board of Directors led by Sohn. 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 is retaining Harman’s workforce, headquarters and facilities, as well as all of its consumer and professional audio brands.