Samsung Snaps Up Harmon International For $8 Billion

Samsung has announced plans to buy Harman International for $8 billion. Or put another way, $112 per share in cash representing a premium of 28% based on Harman’s closing stock price on 11th November. Harman International makes infotainment systems, telematics products, and connected safety and security features for cars. On top of that, they have brands like Mark Levinson, JBL, Harmon Kardon, dbx, Lexicon and Infinity under their umbrella.

This is clearly an attempt by Samsung to diversify what the company offers from an electronics standpoint. I am guessing the exploding Galaxy Note 7 fiasco kind of forced the issue on that front. The usual disclaimer of the deal remains subject to Harman shareholder and regulatory approvals, as well as further ‘customary’ conditions applies. But assuming that it sails through that and nothing blows up, the deal is expected to close in mid-2017.

 

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