- Expands Cloud, Mobile, Analytics
Capabilities and Scale in Software Services
- Accelerates Connected Car, Home,
Enterprise and Mobile
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. The transaction is subject to customary
closing conditions and regulatory approvals and is expected to be
completed by the end of HARMAN’s 2015 fiscal year.
Under the agreement, HARMAN will purchase Symphony Teleca for a
base purchase price of $780 million. In addition, the selling
stockholders are eligible for a cash earn-out based on a calendar
2015 revenue target. Approximately $548 million will be paid at
close - $382 million in cash and $166 million in HARMAN stock. The
number of HARMAN shares issued will be based on the volume weighted
average trading price 60 days prior to January 21. 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. The cash and
stock transaction is expected to be accretive to HARMAN’s adjusted
earnings in fiscal year 2016, excluding purchase accounting
charges, transaction costs, integration costs and other special
items. The transaction is subject to customer closing
adjustments.
“The 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’s continued success,” said Dinesh C. Paliwal,
HARMAN Chairman, President and Chief Executive Officer. “The
acquisition of Symphony Teleca is a transformative step for HARMAN
that gives us immediate scale in software services. 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’ desires for building a seamless, safe and secure
connected lifestyle.”
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.
Symphony Teleca CEO Sanjay Dhawan, who will join HARMAN upon
closing and lead the new business division, said, “We share
HARMAN’s passion for creating the most immersive connected
experience by designing powerful, intelligent software solutions
for our customers. 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.”
Transaction Positions HARMAN for Continued Value
Creation:
- Accelerates Innovations for Expanded
Industries and Markets: Through greater global engineering
scale and complimentary customer base, the acquisition will enable
HARMAN to rapidly develop and commercialize more innovative
solutions and systems for a broader set of industries.
- Establishes HARMAN as Unique
Provider of Application Engineering Services for Connected
Experiences: With the competitive advantage of established
systems solutions, and global expertise across analytics, mobile
development and cloud, HARMAN will be able to provide a
comprehensive application services offering across the automotive,
enterprise and consumer markets.
- Expands Platform for Integrated
Solutions that Reflect Convergence of Telecommunications, Mobile
Devices, and Automotive: This acquisition will provide HARMAN
with the opportunity to meet the growing demand for integrated
technologies across these fast growing and converging segments.
Customers of both companies will be able to leverage a complete set
of software defined services, particularly around IoT gateway,
predictive analytics, cloud enablement, and turnkey mobile
development and commercialization that enable everything from
autonomous driving to intelligent cities.
- Deepens Technology Partnerships
through Long Standing Industry Ecosystem Alliances: Symphony
Teleca will bring deep expertise and scale from a number of long
established ecosystem and partnerships covering Google Android,
Microsoft, Adobe, Intel and other technologies. As one of the first
Open Handset Alliance members and contributor to the core Google
Android platform, Symphony Teleca has grown to the largest Android
ecosystem scaling partner worldwide having delivered more than 800
commercial projects across different industries and device types.
The Company is also a strategic cloud partner of Microsoft and has
helped more than 100 customers move, scale and manage cloud
platforms and infrastructure.
- Strengthens Financial Profile with
More Diversified Revenue Mix: With calendar year 2014 revenues
of approximately $370 million and adjusted EBITDA of approximately
$60 million, the Symphony Teleca business will further enhance the
Company’s growth profile.
Conference Call
The Company will host a conference call with the investment
community Thursday, January 22, 2015 at 10:00 AM EST. To
participate call 1-800-763-6564 (North America) or 1-212-231-2924
(International), Access Code 21760117. A replay of the call will
also be available following its completion at
approximately 1:00 p.m. EST. To listen to the replay, dial
1-800-633-8284 (U.S.) or 1-402-977-9140 (International), Access
Code 21760117.
About HARMAN
HARMAN (www.harman.com) designs,
manufactures and markets premier audio, visual, infotainment and
enterprise automation solutions for the automotive, consumer and
professional markets. With leading brands including AKG®, Harman
Kardon®, Infinity®, JBL®, Lexicon®, Mark Levinson ® and Revel®, the
Company is admired by audiophiles, musicians and the entertainment
venues where they perform. More than 25 million automobiles on the
road today are equipped with HARMAN audio and infotainment systems.
HARMAN has a workforce of approximately 16,600 people across the
Americas, Europe, and Asia and reported sales of $5.6 billion for
the twelve months ended September 30, 2014.
About Symphony Teleca
Symphony Teleca (www.SymphonyTeleca.com ) is a new age
technology services company, helping customers innovate at the
convergence of smart devices, software, cloud and data. Symphony
Teleca’s engineering competencies – UX Design, Analytics and Agile
Engineering, and service offerings across ideation, development and
integration, help customers accelerate time to market. Symphony
Teleca is a fast-growing global company with over 8,000 employees
in over 40 offices worldwide, including the Americas (USA,
Argentina), Europe (UK, Germany, Sweden, Russia, Poland) and Asia
(India, China, Korea, Japan) and is headquartered in Mountain View,
California.
© 2015 HARMAN International Industries, Incorporated. All rights
reserved. Harman Kardon, Infinity, JBL, Lexicon and Mark Levinson
are trademarks of HARMAN International Industries, Incorporated,
registered in the United States and/or other countries. AKG is a
trademark of AKG Acoustics GmbH, registered in the United States
and/or other countries.
Photos/Multimedia Gallery Available:
http://www.businesswire.com/multimedia/home/20150122005519/en/
HARMANDarrin Shewchuk, +1 203-328-3834Director, Corporate
Communicationsdarrin.shewchuk@harman.comorSymphony TelecaSunny
Neogi, +1 425-443-5246Head,
MarketingSunny.Neogi@SymphonyTeleca.com
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