Samsung buys Harman for fast inroad into connected car space
From IHS Markit’s perspective, the combination of Samsung and Harman in terms of its benefits for each other in automotive technology is a no brainer.
Samsung Electronics has announced that it has entered a definitive agreement with US-based Harman International Industries to buy the automotive industry supplier. In a statement, the South Korean company said that it is making a cash offer of USD112 per share, which amounts to a total equity value of USD8 billion. The purchase price is based upon a 28% premium over Harman's closing stock price on 11 November and a 37% premium over its volume weighted average price on the previous 30 days. Samsung said that it expects to use cash on hand to fund the transaction. The agreement has been unanimously approved by the boards of directors of both companies, but will be subject to approval by Harman's shareholders, regulatory approvals, and other customary closing conditions. The deal is expected to be closed in mid-2017.