Global private equity firms including Apax Partners LLP, Bain Capital, LP, The Carlyle Group Inc. (NasdaqGS: CG) and General Atlantic (General Atlantic Service Company, L.P.) 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 (Harman International Industries, Incorporated), a Samsung Group company, is looking at a valuation of $400 million - $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 (Harman International (India) Private Limited) 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.
