Business News

Samsung completes HARMAN transaction

Tue, 14 Mar 2017 11:18

South Korean media report that despite the arrest of its leader, Vice Chairman of the Samsung board Lee Jae Yong, on bribery and corruption charges, and despite a lawsuit brought by disgruntled HARMAN shareholders. the South Korean giant is pressing ahead with its business, announcing at the weekend the completion of its HARMAN International Industries acquisition, its largest acquisition deal ever.

“Today is a historic moment for us. The close of this transaction opens the door to create substantial growth opportunities and deliver greater benefits for customers worldwide,” said Young Sohn, President and Chief Strategy Officer of Samsung Electronics, in a statement. “We see transformative opportunities in the car — and a future which seamlessly connects lifestyle across automotive, home, mobile and work.”

Sohn also noted that HARMAN’s “iconic audio brands and capabilities paired with Samsung’s leading display technologies will deliver enhanced audio and video experiences to consumers and professional end markets.”

While connected automotive technology has been the focus of the acquisition, HARMAN boasts a number of high-end pro-AV brands, especially audio, such as HARMAN Kardon, JBL, Crown and others. The company will continue to conduct business as an independent subsidiary under the terms of the deal, but it is not entirely clear how this pro-AV portfolio fits with the strategy of the acquisition.

“We are excited to have completed the transaction, which provides compelling cash value to our stockholders, benefits our customers and provides new opportunities for our employees,” said Dinesh Paliwal, HARMAN President and CEO. “Samsung shares our commitment to our customers and our culture of speed, innovation and execution. Samsung provides HARMAN with the scale, platform and complementary technologies to accelerate growth and extend our global market leadership in automotive, smart audio and connected technologies.”

Paliwal will remain at the helm of HARMAN, as will his management team, and will also maintain his position on the company’s board. That said, Samsung will now become the parent company to HARMAN’s work force, headquarters and facilities, and all its consumer and professional audio brands.