STAMFORD, Conn. -- Samsung Electronics on Monday announced it will buy Stamford-based Harman International for $8 billion.
The companies have have entered into a definitive agreement under which Samsung will purchase the Stamford-based automotive technology company for $112 per share in cash, or total equity value of approximately $8 billion, Samsung announced.
The sale will give Samsung a significant presence in the large and rapidly growing market for connected technologies, particularly automotive electronics, which has been a strategic priority for Samsung, and is expected to grow to more than $100 billion by 2025, according to Samsung's announcement.
Harman's Stamford headquarters are located at 400 Atlantic St., a building it shares with Charter Communications.
Harman leads the marketplace, with over 30 million vehicles presently equipped with its car and audio systems, said the company's announcement.
About 65 percent of Harman's $7 billion of reported sales in 12 months to Sept. 30 are automotive-related, and orders backlogged June 30 were for $24 billion, said the release.
“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," said Dinesh Paliwal, Harman Chairman, Chairman, President and CEO.
“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,” said Oh-Hyun Kwon, Vice Chairman and Chief Executive Officer of Samsung Electronics. “