Korean giant, Samsung, is about to fork out $8 billion in cash on audio manufacturer, Harman, in its largest deal to date. Approximately 65 percent of Harman’s sales ($7 billion total over the last year) were for automotive-related products, and Harman provides roughly 30 million vehicles with connected car devices and audio systems worldwide. From a Samsung perspective, this deal will put the company on a more even playing field with rival brands like Google and Apple, both of whom have been advancing their respective automotive technology offerings.
According to Samsung Electronics' Vice Chairman and CEO, Oh-Hyun Kwon, Harman perfectly complements Samsung in terms of technologies, products, and solutions:
“Joining forces is a natural extension of the automotive strategy we have been pursuing for some time,” he insists.
Samsung will pay $112 per share – a healthy premium on Harman’s current share price of $87.65 - which brings the total value to around $8 billion. The deal will be completed in mid-2017, making Harman a standalone subsidiary of Samsung.