Samsung Electronics acquired Harman International for approximately $8 billion, with stockholders receiving $112.00 per share. The acquisition, finalized in March 2017, represents Samsung's strategy to diversify from its declining smartphone business into the automotive technology market. Harman will operate as a standalone subsidiary while retaining its workforce and management team.

1. Acquires

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.

6. Harman Stock

7. Samsung Stock

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

9. THANK YOU!
Deepankar Khare
References:
• Google Finance
• Wikipedia