Upon the closing of the acquisition deal, Harman International Industries of the U.S. has become a 100% wholly-owned subsidiary of Samsung Electronics.

Working together with Samsung’s semiconductor chip, LCD and OLED display, and Li-ion secondary battery business units, Harman is expected to provide a launching pad for Samsung long overdue foray into the car electronic market.

Harman is one of the world’s top-tier automotive electronics module makers, which has been working together with GM.

The combination of Harman’s expertise in software, audio and car infotainment system with Samsung’s knowhow and technology prowess in hardware will create a big synergy effect, as the world’s largest memory chip maker is staking out automotive electronics as a new breadbasket.

For Samsung, the acquisition will give much-needed brand power.

“We see transformative opportunities in the car – and a future which seamlessly connects lifestyle across automotive, home, mobile and work. Samsung’s and HARMAN’s leadership in these spaces perfectly positions Samsung to be the preferred partner to our OEM customers.” Young Sohn, president and CSO of Samsung Electronics, and chairman of the board at HARMAN said “Bringing together HARMAN’s iconic audio brands and capabilities paired with Samsung’s leading display technologies will deliver enhanced audio and video experiences to consumers and professional end markets.”

Dinesh Paliwal, president and CEO of HARMAN said “Samsung provides HARMAN with the scale, platform and complementary technologies to accelerate growth and extend our global market leadership in automotive, smart audio and connected technologies. Recognizing the importance of partnerships in an increasingly connected world, particularly in automotive, we are poised to leverage our combined teams and resources to produce even greater value for our customers. Working closely with automakers and other technology companies, Samsung and HARMAN will define – and drive – the future of automotive.”

Under the terms of the agreement, HARMAN stockholders will receive $112.00 per share in cash.

The completion follows the satisfaction of all conditions to the closing of the transaction, including approval of the transaction by HARMAN stockholders and receipt of all necessary regulatory approvals in the United States and certain foreign jurisdictions.

HARMAN will operate as a standalone Samsung subsidiary, overseen by a Board of Directors led by Mr. Sohn.

Mr. Paliwal will remain CEO of HARMAN, leading the company with his management team, and will continue to serve as a member of its Board. Samsung is retaining HARMAN’s work force, headquarters and facilities, as well as all of its consumer and professional audio brands.