Started as a specialist in hi-fi audio products, Harman also owns stereo equipment brands such as JBL, Kardon, Infinity and Revel. Around 65 percent of its USD 7 billion in annual sales now comes from the car market. Samsung said the takeover will help it leverage its products such as semiconductors, displays and mobility in the quickly expanding connected car market, while also complementing its consumer electronics and professional systems portfolios.
Samsung's all-cash offer of USD 112 per share Harman represents a nearly 30 percent premium on the company's share price. Upon closing, Harman will operate as a standalone Samsung subsidiary, and continue to be led by Dinesh Paliwal and its current management team. Samsung’s Automotive Electronics Business Team, set up in December 2015 to identify opportunities for Samsung in the automotive sector, will work closely with the Harman team.
Subject to regulatory approvals, the takeover is expected to close in mid-2017.
