Samsung’s Harman acquisition complete, will retain workforce and brands
Everything in life is a process, but the end to some processes is a cause for celebration. That is the case for Samsung, as its Harman International acquisition is now complete after four months of hard work to see it through. Harman stockholders will receive $112 per share, with a total purchase payment of $8 billion – in step with earlier reports. Harman International shareholders approved the acquisition three weeks ago, as well as the US Federal Trade Commission (FTC), so today’s confirmation is no surprise.
While many consumers will experience AKG audio in the Galaxy Tab S3 and upcoming Galaxy smartphones such as the Galaxy S8, Galaxy S8+, and Galaxy Note 8, Samsung’s acquisition of Harman was done with the car in mind as well. “We see transformative opportunities in the car – and a future which seamlessly connects lifestyle across automotive, home, mobile, and work,” said Samsung Electronics President and Chief Strategy Officer (CSO) and Harman Board Chair Young Sohn.
Under the terms of the agreement, Samsung will retain all Harman International brands that Harman acquired before the Samsung acquisition, which, of course, includes AKG Acoustics, among other brands. Samsung has said it will also maintain Harman as a subsidiary along with its facilities and manpower, but Harman will be delisted from the New York Stock Exchange (a routine action for acquired companies).
Samsung’s Harman acquisition continues to emphasize the importance the Korean giant is attaching to automotive as the next big thing in the information technology (IT) sector. Though Harman now belongs to Samsung, the company known for its formidable acquisitions is still pushing forward with talks to acquire auto parts giant and Fiat Chrysler subsidiary Magneti Marelli despite a delay over the Galaxy Note 7 fiasco.