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Asia Today ISSN 1861-4604 Monday, May 28, 2018

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Samsung Electronics enters the automotive tech race, acquires Harman

For Harman $8 billion

Share on Facebook November 16, 2016, Reporter : Big News Network, Reader : 524

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SEOUL, South Korea - Harman International, leading U.S. automotive player has been acquired by Samsung, which will allow the South Korean electronics giants to step into the rapidly growing automobile industry for connected technologies.> Big News Network

Samsung Electronics decided to acquire Harman International Industries for $8 billion, Harman CEO Dinesh Paliwal told Jim Cramer. This assures that Samsung will now be a part of the industry, particularly in automotive electronics.  

"Frankly when we see that the integration of these two companies, when we put it together, this is really dynamite because it's so complimentary," Paliwal said on the show ‘Mad Money.’ 

Harman International is a market leader that uses innovative technologies to drive connected products for automakers, consumers and enterprises worldwide, prioritising safety and security.

Moments after Samsung announced its acquisition of Harman International, shares of Harman rose by 25 percent.

Harman’s expertise in designing and integrating in-vehicle technologies will combine with Samsung’s proficiency in connected mobility, semiconductors, user experience, displays and its global distribution channels.

This will, in turn, produce enhanced customer benefits and elevate user experiences, the companies believe.

“Samsung is an ideal partner for Harman and this transaction will provide tremendous benefits to our automotive customers and consumers around the world.  Combining Samsung’s strengths in leading-edge displays, connectivity and processing solutions with Harman’s technology leadership and long-standing customer relationships will enable OEMs to provide new offerings for their customers,” Dinesh Paliwal, Harman chairman, president and CEO, reportedly said.

Samsung, on the other hand, will be open to a world of innovative automotive technologies, which it will majorly contribute to and expand its business areas. 

Samsung said it will buy the Stamford, Conn.-headquartered firm for $112.00 per share in an all-cash deal in what is said to be the biggest acquisition in Samsung’s history.

According to Oh-Hyun Kwon, vice chairman and CEO of Samsung Electronics, “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.” 

According to reports, Samsung’s own shares also rose on the deal, which was announced after the market closed Monday. The stock climbed as much as 1.8 percent as of 9:45 a.m. in Seoul.

While Harman CEO Paliwal says he plans to double down cyber security through this acquisition, customers are eager to witness the outcome.

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