{"id":1226,"date":"2015-01-22T19:30:03","date_gmt":"2015-01-22T19:30:03","guid":{"rendered":"http:\/\/www.symphonytg.com\/?p=1226"},"modified":"2015-01-22T19:30:03","modified_gmt":"2015-01-22T19:30:03","slug":"harman-to-acquire-software-services-company-symphony-teleca","status":"publish","type":"post","link":"https:\/\/stg.com\/news\/harman-to-acquire-software-services-company-symphony-teleca\/","title":{"rendered":"HARMAN TO ACQUIRE SOFTWARE SERVICES COMPANY SYMPHONY TELECA"},"content":{"rendered":"

HARMAN International Industries, Incorporated (NYSE:HAR), the premier audio, visual, infotainment and enterprise automation group, today announced it has signed an agreement with Symphony Technology Group to acquire Symphony Teleca, a privately-held global software services company. Based in Mountain View, CA, Symphony Teleca provides software engineering and integration services that help businesses rapidly design and develop products and technologies at the convergence of device, sensors, cloud and data. With the acquisition of Symphony Teleca, HARMAN will add a fourth division to its three primary businesses: Infotainment, Lifestyle and Professional.\u00a0 The transaction is subject to customary closing conditions and regulatory approvals and is expected to be completed by the end of HARMAN\u2019s 2015 fiscal year.<\/p>\n

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Under the agreement, HARMAN will purchase Symphony Teleca for a base purchase price of $780 million. \u00a0In addition, the selling stockholders are eligible for a cash earn-out based on a calendar 2015 revenue target.\u00a0 Approximately $548 million will be paid at close – $382 million in cash and $166 million in HARMAN stock.\u00a0 The number of HARMAN shares issued will be based on the volume weighted average trading price 60 days prior to January 21.\u00a0 The remainder of the base purchase price as well as any additional earn-outs will be paid in cash in the first quarter of calendar 2016.\u00a0 The cash and stock transaction is expected to be accretive to HARMAN\u2019s adjusted earnings in fiscal year 2016, excluding purchase accounting charges, transaction costs, integration costs and other special items. \u00a0The transaction is subject to customer closing adjustments.<\/p>\n

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\u201cThe Internet of Things (IoT) is ushering in a rapid convergence of experiences, content and commerce and advancing technology from digital to connected to intelligent systems. Software is driving this evolution and as a result, software solutions and services will be key to HARMAN\u2019s continued success,\u201d said Dinesh C. Paliwal, HARMAN Chairman, President and Chief Executive Officer.\u00a0 \u201cThe acquisition of Symphony Teleca is a transformative step for HARMAN that gives us immediate scale in software services.\u00a0 With the addition of cloud, mobility and analytics competencies, we will accelerate solutions for the connected car and for a broader set of industries and markets. We look forward to welcoming the Symphony Teleca team to HARMAN and working closely with them to fulfill our customers\u2019 desires for building a seamless, safe and secure connected lifestyle.\u201d<\/p>\n

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Symphony Teleca has more than 8,000 employees, predominantly software engineers and designers, and the company generated revenues of approximately $370 million in calendar year 2014. The company serves more than 300 active customers, including Google, Microsoft, Intel, Adobe, Jaguar Land Rover, Verizon, Comcast, Sirius XM and Tesco, and spans numerous verticals, such as telecom, automotive, healthcare, consumer electronics, retail and media. Symphony Teleca works closely with its customers and partners to design and develop innovations in applications, products and platform. In telecommunications, Symphony Teleca has delivered more than 800 commercial Android products, from mobile phones and tablets to televisions and wearables, further underscoring its expertise in fast growing technology categories. Symphony Teleca is a leading alliance member of Microsoft and Intel IoT platforms, and is the only services company that is a member of the Google Open Automotive Alliance, of which HARMAN is also a member.<\/p>\n

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Symphony Teleca CEO Sanjay Dhawan, who will join HARMAN upon closing and lead the new business division, said, \u201cWe share HARMAN\u2019s passion for creating the most immersive connected experience by designing powerful, intelligent software solutions for our customers.\u00a0 As part of HARMAN, we will have greater access to resources to more rapidly capitalize on the growing demand for innovations at the convergence of software, data and devices. By leveraging our combined global customer base, we will be able to expand our solutions for all markets.\u201d<\/p>\n

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Transaction Positions HARMAN for Continued Value Creation: <\/b><\/p>\n