Samsung Electronics Co. has completed its takeover of U.S.-based automotive technology manufacturer Harman International Industries Inc. in a deal worth $8 billion which gives the South Korean tech giant a solid footing in the automotive electronics market, the company said in a press release Saturday (U.S. time, Friday).
Harman stockholders will receive $112 per share in cash upon the closing of the deal which was first revealed last November and approved by the U.S. firm’s stockholders and U.S. and other countries’ regulatory bodies.
Through the deal, – the biggest buyout not only for the firm but also local industry- Samsung will expand its presence in a large and rapidly burgeoning market for connected technologies, particularly automotive electronics, which has been its strategic priority for future growth.
“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, Harman, in a statement. He added, “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.”
“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 chief executive. “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,” Paliwal added. “Working closely with automakers and other technology companies, Samsung and Harman will define – and drive – the future of automotive.”
Harman will operate as a standalone Samsung subsidiary with current chief executive Dinesh Paliwal retaining his seat. Its operation will be overseen by a Board of Directors led by Young Sohn, President and Chief Strategy Officer of Samsung Electronics, and Chairman of the Board. Samsung is also making no changes to Harman’s work force, headquarters and facilities, as well as all of its consumer and audio brands.
Harman shares will cease trading prior to market open Monday and will be delisted from the New York Stock Exchange.
Shares of Samsung closed Friday at 2,009,000 won ($1,739), down 0.05 percent from the previous session in Seoul trading.
By Kim Dong-eun
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