Harman Buys Symphony Teleca For At Least $780M And Purple Bend For $170M
Harman, one of many world’s largest audio corporations with manufacturers like JBL, Harman Lardan, Infinity and lots of others underneath its wing, is now investing huge within the know-how and networking that goes into delivering knowledge wirelessly.
Right now, the corporate introduced two acquisitions that collectively put a dent of at the least $1 billion in its coffers, but in addition place it to maneuver aggressively into over-the-air service supply to wi-fi units like smartphones, tablets, automobiles and the related residence.
The corporate is buying Symphony Teleca, a Mountain View-based mostly specialist in software program for cloud-based mostly and wi-fi companies, together with round Web-of-issues purposes. And additionally it is shopping for Pink Bend Software program, an Israel-based mostly developer of over-the-air upgrading and different software program administration providers.
As a part of the deal, Symphony might be on the middle of a fourth division at the corporate, Harman says, alongside present enterprise strains in infotainment, way of life and professional providers. It can give attention to the Web of Issues and the push for a brand new marketplace for related units in houses and workplaces.
“The Web of Issues (IoT) is ushering in a speedy convergence of experiences, content material and commerce and advancing know-how from digital to related to clever methods. Software program is driving this evolution and consequently, software program options and providers shall be key to HARMAN’s continued success,” stated Dinesh C. Paliwal, Harman Chairman, President and Chief Government Officer, in a press release.
“The acquisition of Symphony Teleca is a transformative step for HARMAN that provides us speedy scale in software program providers. With the addition of cloud, mobility and analytics competencies, we’ll speed up options for the related automotive and for a broader set of industries and markets. We sit up for welcoming the Symphony Teleca staff to HARMAN and dealing intently with them to satisfy our clients’ wishes for constructing a seamless, protected and safe related way of life.”
Harman says it is going to purchase Symphony Teleca for a base buy worth of $780 million, alongside an unspecified money earn-out based mostly on a 2015 income goal. At shut, $548 million can be paid out, $382 million in money and $166 million in Harman inventory.
Purple Bend, in the meantime, is valued at $one hundred seventy million, $ninety nine million in inventory and $seventy one million in money. The sellers are additionally eligible for an extra $30 million within the first quarter of calendar yr 2017 “based mostly on the achievement of sure efficiency milestones.”
Pink Bend works with quite a lot of handset producers and carriers for OTA providers resembling app and working system and firmware updates, with some 2 billion units managed with its software program at the moment worldwide.
“This acquisition of Pink Bend, a real pioneer in OTA and virtualization applied sciences for cyber safety, provides a important element to our automotive techniques and providers portfolio that may primarily future proof software program in automobiles, finally making them safer, smarter and extra environment friendly,” stated Paliwal in a press release. “Along with our Symphony Teleca acquisition, HARMAN now has the important basis and deep bench power for a complete methods and providers portfolio. Right now marks an enormous transformation for HARMAN and additional development in the direction of delivering shoppers a seamless, related automotive and related way of life expertise.”