Samsung Electronics to Acquire HARMAN

Discussion in 'Industry News' started by Amirious, Dec 9, 2016.

  1. Amirious

    Amirious Platinum Record

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    This is going to be a long read!!
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    Samsung Electronics and Harman International Industries, Incorporated today announced that they have entered into a definitive agreement under which Samsung will acquire HARMAN for $112.00 per share in cash, or total equity value of approximately $8.0 billion. Upon closing, the transaction will immediately give Samsung a significant presence in the large and rapidly growing market for connected technologies, particularly automotive electronics, which has been a strategic priority for Samsung, and is expected to grow to more than $100 billion by 2025.

    HARMAN is the market leader in connected car solutions, with more than 30 million vehicles currently equipped with its connected car and audio systems, including embedded infotainment, telematics, connected safety and security. Approximately 65% of HARMAN’s $7.0 billion of reported sales during the 12 months ended September 30, 2016 are automotive-related, and its order backlog for this market at June 30, 2016 was approximately $24 billion.

    Dinesh Paliwal, HARMAN Chairman, President and CEO, stated, “This compelling all-cash transaction will deliver significant and immediate value to our shareholders and provide new opportunities for our employees as part of a larger, more diversified company. Today’s announcement is a testament to what we have achieved and the value that we have created for shareholders.

    Samsung is an ideal partner for HARMAN and this transaction will provide tremendous benefits to our automotive customers and consumers around the world. Combining Samsung’s strengths in leading-edge displays, connectivity and processing solutions with HARMAN’s technology leadership and long-standing customer relationships will enable OEMs to provide new offerings for their customers. Partnerships and scale are essential to winning over the long term in automotive as demand for robust connected car and autonomous driving solutions increases at a rapid pace.

    This transaction will bring HARMAN and Samsung’s complementary strengths together to accelerate innovation in this space. More broadly, this investment underscores the strength of HARMAN’s employees, as well as our success and leadership across our markets. We look forward to working together with Samsung to elevate experiences for consumers worldwide.”

    HARMAN’s leading brands and cutting-edge audio systems include JBL®, Harman Kardon®, Mark Levinson®, AKG®, Lexicon®, Infinity®, and Revel®. The company also licenses Bowers & Wilkins® and Bang & Olufsen® brands for automotive. All of these brands will greatly enhance the competitiveness of Samsung’s mobile, display, virtual reality and wearable products to deliver a fully differentiated audio and visual experience for customers.

    The combination will also expand the combined company’s business-to-business platform through its ability to deliver integrated, large-scale audio and visual professional solutions at stadiums, concert facilities and other performance centers such as The John F. Kennedy Center for the Performing Arts and STAPLES Center – home of the GRAMMY Awards®.

    Samsung will gain access to HARMAN’s 8,000 software designers and engineers who are unlocking the potential of the IoT market. This collaboration will deliver the next generation of cloud-based consumer and enterprise experiences, as well as end-to-end services for the automotive market through the convergence of design, data and devices.

    Upon closing, HARMAN will operate as a standalone Samsung subsidiary, and continue to be led by Dinesh Paliwal and HARMAN’s current management team. Samsung is pursuing a long-term growth strategy in automotive electronics, and plans to retain HARMAN’s work force, headquarters and facilities, as well as all of its consumer and professional audio brands. Samsung believes the combination will increase career development and advancement opportunities for the employees of both companies.

    Source: https://news.samsung.com/global/sam...owth-in-automotive-and-connected-technologies
     
    Last edited: Dec 10, 2016
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  3. mozee

    mozee Audiosexual

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    Very interesting. Though TBH at 8 Billion seems a very good deal, too good of a deal.
     
  4. mrpsanter

    mrpsanter Audiosexual

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    The next Galaxy S Whatever might have a better speaker then.
     
  5. Oysters

    Oysters Audiosexual

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    there is no escaping samsung!
     
  6. MYCbeats

    MYCbeats Platinum Record

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    Great now I have to worry about my AKG 241s exploding..
     
  7. kostovas

    kostovas Kapellmeister

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    Please provide source when text is copy-pasted.....https://news.samsung.com/global/sam...owth-in-automotive-and-connected-technologies
     
  8. Amirious

    Amirious Platinum Record

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    @kostovas Thank you. I forgot to do it. now it should be correct.
     
  9. mercurysoto

    mercurysoto Audiosexual

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    This example of big corporations taking over smaller investments reminds me of the acquisition of Fender Instruments by CBS at the end of the 60s. From that point onward, Fender went spiraling down until the early 80s not because they became cheap instrument makers, but because the untarnished reputation of consistent quality was somehow lost. There have always been great fender guitars and basses, but there were also not so great instruments built during the infamous CBS era. As for me, maybe it's time I get a couple of JBL LSR308 before they change manufacturing policies. Maybe one day they'll become classics :wink:
     
  10. G String

    G String Rock Star

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    Obvious synergy with Samsung's excavator division. [and their plan to take over the world]

    Anything you can do, Samsung can do better (even if it means buying you out).
     
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