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Harman International CEO says Samsung’s big deal is ‘dynamite’

Harman International CEO says Samsung’s big deal is ‘dynamite’
Harman International CEO says Samsung’s big deal is ‘dynamite’

Harman International Industries CEO Dinesh Paliwal told Jim Cramer on Monday that he is thrilled that Samsung Electronics is acquiring the company for $8 billion.

"Frankly when we see that the integration of these two companies, when we put it together, this is really dynamite because it's so complimentary," Paliwal told the "Mad Money" host.

Shares of Harman skyrocketed 25 percent on the news that Samsung is acquiring the company for $112 per share, a nearly 28 percent premium over where it traded on Friday. It signaled a major push for Samsung into auto-related technology.

Dinesh Paliwal, Harman International CEO
Ashlee Espinal | CNBC

Harman is the No. 1 maker of automobile infotainment systems that integrates navigation, safety solutions, media and smartphone connectivity. It also makes high-end audio systems.

When the opportunity for a deal with Samsung arose over the summer, Paliwal said he discovered the two companies had complimentary technology, such as high-end display, 5G connectivity and artificial intelligence.

"Totally complimentary. Put it all together, we can have a proof of concept which is ready to go in L3/L4 connected autonomous driving experience," Paliwal said.

Moving forward, Paliwal added that he plans to double down in cybersecurity. He believes that the threat has now extended into individuals homes, cars and personal devices. However, he is excited about Harman being a subsidiary of Samsung in the future.

"I'm actually super excited to run this company with all the synergies from the deep R&D, which will actually accelerate the R&D and innovation that we have been driving," Paliwal said.

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