Samsung has announced its acquisition of Harman has been completed ahead of the original mid-2017 schedule for a total equity value of $8 billion or $112 per share.
This follows the satisfaction of all conditions to the closing of the transaction, including approval of the transaction by Harman stockholders and receipt of all necessary regulatory approvals in the United States and certain foreign jurisdictions.
“Today is a historic moment for us,” says Young Sohn, president and chief strategy officer of Samsung Electronics, and chairman of the board, Harman. “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.”
“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,” says 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.”
In connection with the completion of the transaction, Harman’s common stock ceased trading prior to market open on 13 March, 2017 and will be delisted from the New York Stock Exchange. Harman will operate as a standalone Samsung subsidiary, overseen by a board of directors led by Mr Sohn. Mr 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.