Mumbai
:
Global private equity firms including Apax Partners, Bain Capital, Carlyle and General Atlantic are vying for a controlling stake in the digital transformation services (DTS) business of Harman US in India, three people aware of the development said. Harman US, a Samsung Group company, is looking at a valuation of $400-500 million for the Indian DTS business.
“Currently, the funds are doing due diligence. The second round of bids is likely only next month,” one of the people cited above said on the condition of anonymity.
Harman US has hired global investment bank Deutsche to help with the process. Mint was the first to report on the group’s plans to sell a controlling stake in the India business on 12 May. Harman US is famous for its JBL, Harman Kardon and Infinity audio products; however, these are separate from its DTS business that’s up for sale in India.
A Harman India spokesperson said, “Harman does not comment on market speculation or rumors. As a global leader in technology and innovation across the automotive, consumer, and enterprise markets, we remain focused on delivering solutions that amplify life experiences. We are always exploring opportunities to strengthen our business, enhance our capabilities, and deliver value to our customers and stakeholders.”
Spokespersons for Apax and Carlyle and General Atlantic declined to comment, while Bain Capital did not respond to emailed queries.
Among top brands
Harman US is a Connecticut-based manufacturer of audio systems, automotive infotainment systems, lifestyle products, and connectivity solutions provider. It is counted among the top brands globally, with the majority of the revenue being derived from the automotive business and has contracts from some of the leading automotive original equipment manufacturers (OEMs). It operates in more than 30 countries.
Harman’s DTS business builds systems for clients across life sciences, high-tech, and industrial and consumer sectors. It helps life sciences and med-tech companies accelerate clinical trials and modernize platforms. For high-tech firms, it helps simplify platform engineering, accelerate development, and unlock end-of-life revenue. It also helps industrial and consumer clients to operate smarter and serve better—through real-time factory insights, connected ecosystems, and enterprise systems.
Revenue driver
The DTS business, particularly its Indian operations, plays a crucial role in driving revenue growth for the group. India is a centre of excellence for the DTS business, with a significant number of employees based here. India is a major hub for technology development within Harman’s DTS business, with a substantial workforce and a focus on key verticals like healthcare, communications, and industrial.
Harman India is a wholly owned subsidiary of Harman US. It has four major business segments, namely, Lifestyle, India Development Centre, Connected Car, and Professional.
Harman Group joins the list of global companies looking to sell or monetize their India business.
“For Harman, the DTS business is non-core to its global strategy and it is looking to monetize it,” the second person cited above said.
In the recent past, companies such as Thyssen Krupp, Haier and Siemens Gamesa have considered selling their Indian business and focusing on their core business. With private equity firms getting active along with domestic business houses which are hungry for inorganic growth, the deal activity in this segment is likely to pick up going forward.
