Oh-Hyun Kwon, vice-chairman and CEO of Samsung Electronics comments: "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."
Samsung predicts that the purchase of Harman will deliver significant growth opportunities and benefits to customers by leveraging Samsung's and Harman's complementary technologies, resulting in increased market penetration across important end markets. "The combination will also expand the combined company's business-to-business platform through its ability to deliver integrated, large-scale audio and visual professional solutions at stadiums, concert facilities and other performance centres such as The John F. Kennedy Center for the Performing Arts and Staples Center - home of the GRAMMY Awards," says Samsung.
Dinesh Paliwal, Harman chairman, president and CEO, comments: "This compelling all-cash transaction will deliver significant and immediate value to our shareholders and provide new opportunities for our employees as part of a larger, more diversified company. Today's announcement is a testament to what we have achieved and the value that we have created for shareholders. Samsung is an ideal partner for Harman and this transaction will provide tremendous benefits to our automotive customers and consumers around the world. Combining Samsung's strengths in leading-edge displays, connectivity and processing solutions with Harman's technology leadership and long-standing customer relationships will enable OEMs to provide new offerings for their customers.
"Partnerships and scale are essential to winning over the long term in automotive as demand for robust connected car and autonomous driving solutions increases at a rapid pace. This transaction will bring Harman and Samsung's complementary strengths together to accelerate innovation in this space. More broadly, this investment underscores the strength of Harman's employees, as well as our success and leadership across our markets. We look forward to working together with Samsung to elevate experiences for consumers worldwide."
Operating Structure and Leadership
The deal is expected to be completed mid-2017. Upon closing, Harman will operate as a standalone Samsung subsidiary, and continue to be led by Dinesh Paliwal and the company's current management team. Samsung is pursuing a long-term growth strategy in automotive electronics, and plans to retain Harman's work force, headquarters and facilities, as well as all of its consumer and professional audio brands. Samsung believes the combination will increase career development and advancement opportunities for the employees of both companies.
Samsung's Automotive Electronics Business Team, which was established in December of 2015 to identify opportunities for Samsung in the automotive sector, will work closely with the Harman management team to realise the full growth potential of the combination.
Webcast
On November 14, Samsung and Harman will host a webcast presentation to discuss the transaction at 8:00 am EST/10:00 pm KST/ 1.00pm GMT.
(LSi Online)
