In November of last year, Samsung announced that it was purchasing Harman International Industries for $112 per share, equivalent to around $8 billion.
The company's biggest ever acquisition, which was an uncharacteristic one for the South Korean conglomerate as it mostly preferred to develop its own technology or buy smaller startups, has now been completed after four months.
Samsung Closes Harman Acquisition
"Today is a historic moment for us. The close of this transaction opens the door to create substantial growth opportunities and deliver greater benefits for customers worldwide," said Samsung Electronics President and Chief Strategy Officer Young Sohn, who is now also serving as Chairman for Harman.
"We are excited to have completed the transaction, which provides compelling cash value to our stockholders, benefits our customers and provides new opportunities for our employees," said Dinesh Paliwal, who will remain as Harman's President and CEO.
Paliwal, in the press release announcing the completion of the acquisition, added that Samsung will be able to provide Harman with scale and complementary technologies that will accelerate its growth and extend its leadership in the global markets of automotive, connected technologies, and smart audio.
Harman is the parent company of Harman Kardon, JBL, Infinity, Mark Levinson, and Lexicon.
Will Customers Benefit From Samsung's Purchase Of Harman?
Samsung will not undergo any changes after the completion of the acquisition, as Harman will continue to function as a standalone entity. However, one of the biggest aspects of the purchase is the collaboration between the two companies, and customers will stand to benefit from it.
With the expertise of Harman on technologies such as connected car systems, new opportunities will be opened up for Samsung in creating new products for its customers. This represents a different way of entering the automotive industry for Samsung, compared with the Waymo self-driving car and Android Auto projects of Google and the CarPlay and Project Titan initiatives of Apple.
Samsung has actually become a tier 1 parts supplier to international automobile manufacturers that utilize the infotainment technology of Harman. Samsung will then likely leverage the networks established by Harman to expand its supply of semiconductors and displays, which means that users can expect more Samsung components to find their way into vehicles.
Harman In Samsung Smartphones
The purchase of Harman, in fact, may already have had its effect on Samsung's products for the benefit of customers.
After the news on Harman's purchase by Samsung, reports claimed that future flagship smartphones, the Galaxy S9 and the Galaxy Note 9, may feature high-end audio technology of Harman. Succeeding rumors, however, claim that customers might not have to wait that long to enjoy Harman technology in Samsung smartphones, with specifications pointing to the possibility that Harman stereo speakers will be used for the upcoming Galaxy S8 and Galaxy S8 Plus.
Harman stereo speakers on the Galaxy S8 and Galaxy S8 Plus have not yet been confirmed, though the chances of such a feature on the upcoming flagship smartphones are considerably high due to Samsung's acquisition of Harman. We will know for sure once Samsung officially unveils the Galaxy S8 and Galaxy S8 Plus on March 29.
