Jan 22 (Reuters) - Audio products maker Harman International Industries said it would acquire two privately held companies for a combined $950 million in cash and stock to bulk up its offerings for the “connected car”.
Harman, home to brands such as JBL, Mark Levinson and Harman Kardon, said it would buy Symphony Teleca, a software services company, for $780 million, and Israel-based Red Bend Software, which specializes in mobile software management, for $170 million.
The company will pay Silicon Valley-based Symphony Teleca$382 million in cash and $166 million in stock when the deal closes, Harman said.
In addition, the selling stockholders are eligible for a cash earn-out based on a calendar 2015 revenue target.
Harman will pay $71 million in cash for the Red Bend acquisition.
Red Bend selling stockholders are also eligible for a cash earn-out of up to $30 million in the first quarter of 2017 if certain performance milestones are achieved.
Harman said it would add a new division to its original three businesses of infotainment, lifestyle and professional following the acquisition of Symphony Teleca.
Symphony Teleca Chief Executive Sanjay Dhawan will lead the new division, the company said.
The Red Bend acquisition will close in Harman’s third quarter in 2015.
Reporting by Anya George Tharakan in Bengaluru; Editing by Sriraj Kalluvila