Samsung Electronics, the world's largest maker of smartphones, has agreed to buy Harman International Industries for about $8 billion (€7.4 billion) in cash – to expand into high-end car audio and internet-connected automobiles.
The offer values Harman shares at $112 apiece, South Korea-based Samsung said in a statement on Monday.
The offer is 28 per cent above Harman’s closing price of $87.65 in New York on Friday.
Samsung announced the acquisition just weeks after talks to buy sections of Fiat Chrysler Automobiles NV’s parts unit were said to have broken down.
Harman gets about 65 per cent of its sales from the automotive sector, Samsung said.
“Harman perfectly complements Samsung in terms of technologies, products and solutions, and joining forces is a natural extension of the automotive strategy we have been pursuing for some time,” vice chairman Kwon Oh-hyun said in the statement.
“Harman immediately establishes a strong foundation for Samsung to grow our automotive platform.”
– (Bloomberg)
