Samsung Electronics acquired Harman International in 2017.
Samsung bought Harman for 8 Billion Dollars, $112/Share.
After acquiring Harman, Harman got delisted from NYSE.
The management remains the same in Harman, Mr. Dinesh Paliwal is the CEO of Harman International.
2. Samsung Electronics
South Korean MNC
Network in 80 Countries and more than 3.7 Lakh Employees
2nd Largest IT Company after Apple Inc. in terms of Revenue
market cap as of 18/11/2016: $188.98bn (KRW223.117tn)
World’s Leader in TV, Mobile, Memory Chips Manufacturer
Flagship Products: Galaxy Mobiles, OLED TV’s, Convertible Fridge
3. Harman International
American Company deals in connected products for Automakers and
Consumers
More than 20 Brands under Harman- JBL, Harman/Kardon, DigiTech, Lexicon
Car Systems, Infotainment Systems, Music Speakers, Professional Sound
Engineering
In FY 2016, revenues reached a record high of $6.91bn, an increase of 12%
compared to the prior year, while operating income increased to $580m.
EBITDA rose by 26% to $804m and the company registered and EBITDA margin
of 11.63% and EPS of $4.99. (NYSE) Market cap as of 18/11/2016: $ 7.622bn
4. The deal represents Samsung’s decision to diversify its risk away
from the declining smartphone business and enter the automotive
technology market, in competition with giants like Google and
Apple.
The acquisition allowed Samsung to leverage on the Connecticut-
based audio system manufacturer’s know-how and offer premium-
connected auto services.
November 14, 2016 entered into agreement with Samsung
Electronics to be acquired. Completed on March, 2017.
5. Transaction Details
HARMAN stockholders will receive $112.00 per share in cash.
Approx. $8 Billion
The completion follows the satisfaction of all conditions to the closing of the
transaction, including approval of the transaction by HARMAN stockholders,
receipt of all necessary regulatory approvals in the United States and certain
foreign jurisdictions.
8. HARMAN’s common stock will cease trading prior to market open on March 13, 2017
(NYSE)
It is 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 work force, headquarters and facilities, as well as all
of its consumer and professional audio brands.
POST-Acquisition