Samsung Electronics to pay US$8 billion for auto parts firm
All cash deal expands South Korean giant's presence in the auto electronics market
Samsung Electronics said on Monday it had agreed to buy Harman International Industries for about US$8 billion, a deal that enables the South Korean conglomerate to expand its presence in the auto parts market.
Board members of Samsung — the world’s largest producer of smartphones — approved the all-cash acquisition of the Connecticut-based firm for US$112 a share, which represents a premium of 28% to Harman’s Friday closing price.
“Harman immediately establishes a strong foundation for Samsung to grow our automotive platform,” Samsung said in a statement.
Harman produces high-end audio systems and other internet-enabled entertainment features for global carmakers including General Motors and Fiat Chrysler.