Probably to promote this acquisition, every single Samsung Galaxy S8 will come with bundled AKG earphones.
After four months of negotiation and hard work on seeing it through, Samsung now completes Harman International acquisition. Harman stockholders will receive $112 per share, with a total purchase payment of $8 billion. Harman International shareholders approved the acquisition three weeks ago, as well as the US Federal Trade Commission (FTC).
While many consumers will experience Harman’s AKG audio in the Galaxy Tab S3 and the upcoming Galaxy smartphones such as the Galaxy S8, Galaxy S8+, and Galaxy Note 8, Samsung’s acquisition of Harman was done with the car in mind as well.
“We see transformative opportunities in the car – and a future which seamlessly connects lifestyle across automotive, home, mobile, and work,” said Samsung Electronics President and Chief Strategy Officer (CSO) and Harman Board Chair Young Sohn.
Under the agreement’s terms, Samsung will retain all Harman International brands that Harman acquired before Samsung’s acquisition, which, of course, includes AKG Acoustics, among other brands. Samsung has said it will also maintain Harman as a subsidiary along with its facilities and manpower, but Harman will be delisted from the New York Stock Exchange (a routine action for acquired companies).
Samsung’s Harman acquisition proves how much importance Samsung is attaching to automotive industry as the next big thing in the information technology (IT) sector. Though Harman now belongs to Samsung, the company known for its formidable acquisitions is still pushing forward with talks to acquire auto parts giant and Fiat Chrysler subsidiary Magneti Marelli despite such delays over the Galaxy Note 7 fiasco.
Expect something good when it comes to audio solutions on the next years, upon Samsung’s implementation of Harman’s technologies. Definitely a great choice for the South Korean giant.