Samsung Buys Harman for $8 Billion

Consumer electronics manufacturer Samsung Electronics will acquire audio products developer Harman International Industries Inc. in a deal valued at $8 billion. The Korean company will pay $112 a share in cash for Harman, in Stamford, Conn., and expand its reach into the auto audio market, a priority for the company. Harman has operations in Northridge, which at one time was its largest facility before layoffs reduced the workforce. In 2008, more than 300 manufacturing jobs were cut at the San Fernando Valley plant. At one time, the company’s operations for Harman/Becker Automotive Systems, Revel, JBL Professional, Soundcraft, Harman Multimedia, and Harman Pro Group were located at the campus on Balboa Boulevard. Harman Chief Executive Dinesh Paliwal said the all-cash deal brings immediate value to shareholders and provides new opportunities for employees as part of a larger, more diversified company. “Samsung is an ideal partner for Harman and this transaction will provide tremendous benefits to our automotive customers and consumers around the world,” Paliwal said in a prepared statement.