In an effort to develop in the automotive market, Samsung said it will buy Harman 8.000 million for access to both their auto power and audio.
The American company Harman is best known for its audio equipment, but also has a strong presence in the automotive market. Last year the company earned more than $ 7 billion, of which their car devices and connected audio systems accounted for 65 percent of total sales.
Harman products are installed in about 30 million vehicles worldwide, which could benefit Samsung as it has already lost a lot of ground to its two main competitors in the online market, Apple and Google cars.
Vice President and General Manager of Samsung Electronics, Oh-Hyun Kwon, issued a statement on the deal, saying, "Harman perfectly complements Samsung in terms of technologies, products and solutions and assembly forces is a natural extension Of the automotive strategy we have been pursuing for some time ".
Samsung has agreed to pay $ 112.00 per Harman share, which far exceeds its current share price of $ 87.65 for a total of $ 8 billion for the company. In general, the Korean company will pay $ 8 trillion to acquire Harman, which will become an independent subsidiary of Samsung when the deal closes in mid-2017.
Dinesh Paliwal, the current Chief Executive Officer, President and President of Harman, will continue to hold these positions after the company is acquired by Samsung and will become a subsidiary. Paliwal also offered his thoughts on the deal, saying, "Samsung is an ideal partner for Harman and this transaction will bring tremendous benefits to our customers and automotive consumers around the world."
Samsung also plans to use the 8,000 Harman developers to promote their Internet Object offers ( "IdO") and "deliver the next generation of end-to-end cloud-based consumers and business services to the automotive market by Bias convergence of design, data and peripherals ".