decor decor
"The cars we drive say a lot about us."

-Alexandra Paul

Samsung to Buy Harman International Industries

Financial Information
  • Enterprise Value                           $8.6 billion
  • EV/LTM Revenue                         1.22x
  • EV/LTM EBITDA                          10.16x
Transaction Facts
  • Samsung Electronics (KOSE: A005930) announced Monday that it entered into an agreement to acquire Harman International Industries (NYSE: HAR), a US technology manufacturer with a strong automotive presence.
  • The deal values Harman at $112 per share in cash, a 28% premium over the company’s Friday closing price. Harman shares rose 25% today, closing at $109.72 per share.
  • Harman is itself the product of several significant acquisitions, growing from its audio roots into software development and car connectivity technology. Last year it acquired technology providers Symphony Teleca and Red Bend Software for $780 million and $170 million, respectively, boosting wireless connectivity capabilities.
  • Samsung has historically not been a significant participant in M&A, but has recently bought SmartThings, LoopPay, Joyent and other technology and related services providers.
Branching Into a Massive Market
  • Not Just a Phone Company: Samsung’s heavy reliance on smartphones has caused significant concern, especially with the Galaxy Note 7 fiasco earlier this year. Cars today include screens, chips and other electronics produced by Samsung – and Harman’s dominant market position will help the company leverage a growing industry. Last month, Qualcomm agreed to acquire NXP Semiconductors for $39 billion – giving it control of the largest chip developer for automobiles in a similar diversification move.
  • Traffic Jam: Samsung is jumping into an industry long-courted by other tech giants, but it is staying safely away from the expensive and risky bleeding edge favored by other tech manufacturers. Alphabet has long researched self-driving cars, while Apple’s top-secret Project Titan is widely thought to be its own version of a self-driving car.
  • Culminating a Long Process: Samsung’s first exposure to the automotive industry came in 1994 when the company started Samsung Motors (in which it retains a minority interest following a sale to Renault). But this transaction represents the conclusion of a task force organized last year to identify the best way to secure an established presence in what was seen as key market.
For more information about this transaction, click here to read the press release.
martinwolf was not the advisor in this transaction.
previous post Back to Articles next post

06 Feb 2024

NWN Carousel acquired by American Securities

Financial Information Revenue: Approx. $900 million Enterprise Value: N/A Transaction Details NWN Carousel announced a transition of ownership from New State Capital Partners to affiliates of American Securities. This transition represents the success of significant investment, organic growth, M&A execution, operational excellence and innovation under ownership of New State Capital Partners. NWN Carousel developed a...

29 Jan 2024

AHEAD to Acquire Computer Design & Integration

Financial Information (USD) Enterprise Value: Approximately $705 Million EV/EBITDA: 9.65x Transaction Details One Equity Partners LLC has entered into a definitive agreement to sell IT services firm Computer Design & Integration to Berkshire Partners-backed AHEAD. The agreement values CDI at approximately $705 million including debt. To fund the transaction, AHEAD plans to issue an incremental...

10 Jan 2024

Hewlett Packard Enterprise to Acquire Juniper Networks

Financial Information ($USD) Enterprise Value: $14.0 Billion EV/LTM Revenue: 2.48x EV/LTM EBITDA: 20.91x   Transaction Details Hewlett Packard Enterprise (NYSE: HPE) and Juniper Networks, Inc. (NYSE: JNPR), a leader in AI-native networks, today announced that the companies have entered a definitive agreement under which HPE will acquire Juniper in an all-cash transaction for $40.00 per...