Harman International Industries (HAR) agreed to be acquired by affiliates of Kohlberg Kravis Roberts and GS Capital Partners, part of Goldman Sachs (GS) - Get Report, in a transaction valued at roughly $8 billion.
The firms will pay $120 in cash for each share of Harman, a 17% premium to its Wednesday close. Harman, a maker of audio products and electronic systems, surged 18.2% to $121.19 following news of the takeover.
As an alternative, Harman's stockholders will be offered the opportunity to exchange some or all of their shares for stock in the new corporation formed by KKR and GS Capital in order to complete the acquisition.
Harman will keep its name, and Dr. Sidney Harman, founder and executive chairman, will retain his post. The transaction should close in the third quarter.