**Global Private Equity Firms Compete for Harman’s Indian DTS Business**
Global private equity firms, including Apax Partners, Bain Capital, Carlyle, and General Atlantic, are competing for a controlling stake in Harman US’s digital transformation services (DTS) business in India. Harman US, a subsidiary of the Samsung Group, is seeking a valuation between $400 million and $500 million for its Indian DTS operations. Currently, these firms are conducting due diligence, with a second round of bids expected next month, according to sources familiar with the matter.
To facilitate this process, Harman US has engaged Deutsche Bank, a global investment bank. The news of the potential sale was first reported on May 12. While Harman is well-known for its audio brands such as JBL, Harman Kardon, and Infinity, these products are distinct from the DTS business that is currently on the market.
A spokesperson for Harman India stated, “Harman does not comment on market speculation or rumors. As a global leader in technology and innovation across automotive, consumer, and enterprise markets, we remain focused on delivering solutions that enhance life experiences. We are always exploring opportunities to strengthen our business and deliver value to our customers and stakeholders.” Representatives from Apax, Carlyle, and General Atlantic declined to comment, while Bain Capital did not respond to inquiries.
**Harman’s Global Presence and DTS Operations**
Harman US, based in Connecticut, specializes in audio systems, automotive infotainment, lifestyle products, and connectivity solutions. It ranks among the top brands worldwide, with a significant portion of its revenue generated from the automotive sector, serving leading automotive original equipment manufacturers (OEMs) across more than 30 countries.
The DTS business at Harman develops systems for clients in various sectors, including life sciences, high-tech, industrial, and consumer markets. It aids life sciences and med-tech companies in expediting clinical trials and modernizing platforms. For high-tech firms, it streamlines platform engineering and accelerates development, while also assisting industrial and consumer clients in optimizing operations through real-time insights and connected ecosystems.
**Significance of the Indian Market**
The DTS business, particularly its operations in India, is vital for the group’s revenue growth. India serves as a center of excellence for Harman’s DTS, employing a substantial workforce and focusing on key sectors such as healthcare, communications, and industrial applications. Harman India operates as a wholly owned subsidiary of Harman US and encompasses four major business segments: Lifestyle, India Development Centre, Connected Car, and Professional.
In conclusion, the competition among private equity firms for Harman’s Indian DTS business highlights the growing importance of digital transformation services in today’s market. As the bidding process unfolds, the outcome could significantly impact Harman’s strategic direction and its role in the global technology landscape.
**FAQ**
**What is Harman’s digital transformation services (DTS) business?**
Harman’s DTS business focuses on developing technology solutions for various sectors, including life sciences, high-tech, and industrial markets, helping clients enhance operations and accelerate innovation.
