Samsung Electronics announced on Saturday that a deal proposed in November to purchase Harman International Industries (HARMAN) and was approved in February is finally complete. The close of this transaction will give HARMAN shareholders $112 per share in cash and has received all the necessary approvals from the US and other countries. With the sale being finalized this means that all common stock in HARMAN will no longer be traded before the market opens on Monday and will no longer appear on the New York Stock Exchange. As it stands nothing will change for the company as they will operate as a subsidiary of Samsung. So as of now current staff, builds, as well as its professional and consumer audio brands will remain intact. President and Chief Strategy Officer of Samsung Electronics Young Sohn will serve as Chairman of the Board for HARMAN and HARMAN CEO Dinesh Paliwal and his team will remain at the helm.
The deal was put in jeopardy after it was announced in November when Robert Pine led a group of shareholders in a lawsuit against HARMANS board and CEO. The group felt that Samsungs $8 billion bid was below value despite the fact its bid was 37% higher than the average monthly share price at the time. They were also concerned with the fact the board didn’t look for other potential buyers for the company.
However, now that the deal has been finalized both Sohn and Paliwal are excited about the purchase with each one agreeing that each company shares the same level of commitment to its customers and a vision for innovation. Sohn said he believes this deal will create growth and provide huge benefits to its customers while Paliwal said that Samsung will provide HARMAN with the scale, platform and similar technologies to expand its reach. HARMAN is known for connected devices in cars that include car systems, audio and visual products, and enterprise automation solutions. The company has a large customer list that includes JBL, AKG, Bang & Olufsen as well as several car companies that include Tesla, Mercedes, Porsche, and Jaguar.