Samsung completes acquisition of Harman International and enters automotive electronics sector

After the transaction is completed, Harman shareholders will receive $112 in cash earnings per share. This condition was negotiated when the merger was first announced in November 2016 and was approved by Harman International shareholders and regulators in the United States and South Korea. After the completion of the acquisition, Samsung Electronics will expand its influence in the field of intelligent network technology and enhance its position in the automotive electronics market segment. The company regards this field as the company's strategic focus and strives to achieve business growth in the future.

Young Sohn, president and chief strategy officer of Samsung Electronics, and chairman of Harman International said in a joint statement: "Today is a historic moment for us. The completion of this transaction creates sustainable growth opportunities and greater benefits for customers around the world. We foresee transformational opportunities in the automotive market and anticipate a future lifestyle where cars, life, home, mobility and work are seamlessly connected through the network. Samsung Electronics and Harman International will establish a good partnership with our OEM customers. In addition, Harman International's audio and Samsung's industry-leading display technologies complement each other and will provide a better audio-visual experience for consumers and professional end markets."

Dinesh Paliwal, President and CEO of Harman, said: "We are pleased to have completed this transaction, which will provide our shareholders with an attractive cash yield, our customers with value, and Samsung Electronics with new opportunities for its employees. The company is committed to speed, innovation and execution, and we share the same culture. Samsung will provide Harman with a platform and complementary technologies to accelerate growth and further expand and solidify our leadership in global automotive, smart speakers and connected technologies."

Harman will operate as an independent subsidiary of Samsung, and Palihua will continue to hold his original position. His company operations will be supervised by Young-Kwon Son, President and Chief Strategy Officer of Samsung Electronics and Chairman of the Board. Samsung Electronics has not made any adjustments to Harman's employees, headquarters and facilities, and even its customers and audio brands have not changed.

Harman's shares will stop trading and be suspended from the New York Stock Exchange on Monday (March 13, 2017). As of last Friday (March 10, 2017), Samsung Electronics' closing price in Seoul trading was 2,009,000 won (about 1,739 US dollars), a slight drop of 0.05% from the previous day.

As a winner of Toutiao's Qingyun Plan and Baijiahao's Bai+ Plan, the 2019 Baidu Digital Author of the Year, the Baijiahao's Most Popular Author in the Technology Field, the 2019 Sogou Technology and Culture Author, and the 2021 Baijiahao Quarterly Influential Creator, he has won many awards, including the 2013 Sohu Best Industry Media Person, the 2015 China New Media Entrepreneurship Competition Beijing Third Place, the 2015 Guangmang Experience Award, the 2015 China New Media Entrepreneurship Competition Finals Third Place, and the 2018 Baidu Dynamic Annual Powerful Celebrity.