Shares of Harman (NYSE:HAR) soared 25% Monday, after it was announced that Samsung (OTC:SSNLF) will buy the company for $112 per share, valuing the company at $8 billion.
I was a shareholder in Harman for a long time, but big forex headwinds and a few other obstacles routinely overshadowed all the positives going on at the company and the stock’s valuation.
I was lucky that I didn’t stubbornly hold on to Harman and got out when I did. Well, with the exception of it now being acquired. In any regard, the stock had stumbled to sub-$65 levels earlier this year, so the buyout price actually looks pretty attractive.
Shares traded to new 52-week highs on the news, but the offer is well below the company’s all-time over $140 per share. But, that’s how it goes sometimes.
The acquisition puts a suite of high-quality automotive businesses (ranging from cyber security and infotainment to audio products) squarely in the hands of Samsung, which is poised to grow its footprint across the technological world.
For Samsung, I think management purchased an excellent company and did so at a great price. Harman is a quality player in the automotive and consumer world, and given where the connected car is rapidly headed (highlighted by Nvidia’s (NASDAQ:NVDA) lights-out earnings report last week), whoever owns this company is bound to benefit.
