Late last year, it was revealed that Samsung may be looking to acquire Harman International Industries, a connected automotive manufacturer for $8 billion at a price $112 per share. This move would grant the company considerable entry into the automotive industry.
Now, Samsung has announced that it has completed the purchase at the aforementioned price, making this the company's biggest acquisition yet.
The Korean tech giant has announced it has received approval from stockholders and regulators in the US as well as other countries. Young Sohn, President and Chief Strategy Officer of Samsung Electronics, and Chairman of the Board, Harman, had the following to say about the acquisition:
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.
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. 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.
Harman will be acting as an independent subsidiary of Samsung, headed by a board of directors under Sohn.
With reference to the transaction process, Harman's common stock will be removed from the New York Stock Exchange and it will also halt trading prior to market open on March 13, 2017. Samsung has announced that it will be maintaining all of Harman's brands, headquarters and facilities, as well as the entire work force, which comprised of over 30,000 employees, as reported in 2016. It is worth noting that Harman promotes its products under more than 20 brands including Harman Kardon, JBL, Lexicon, Infinity, and Mark Levinson, among others.