Harman International Industries, a manufacturer of audio products and electronic systems for the automotive, consumer and professional markets, has agreed to a private equity buyout by Kohlberg Kravis Roberts and Goldman Sachs in a deal worth approximately $8 billion.

According to the agreement, Harman shareholders will have the option to receive $120 per Harman share or exchange shares for those of the newly incorporated concern. The company will continue to be named Harman International Industries and Dr. Sidney Harman will remain executive chairman. Under the agreement, Harman may solicit proposals from other parties within a 50-day period ending June 15. While Harman's board does intend to solicit proposals, the company says there are no assurances that an alternative transaction will be reached, and the company won't disclose any developments related to alternative proposals until a decision has been reached. The deal with Kohlberg Kravis Roberts and Goldman Sachs is expected to close in the third quarter, subject to the approval of Harman stockholders, including that of Dr. Harman himself, who owns about 5% of the company's common stock.

Audio and electronic products maker Harman International Industries Inc. said Thursday it agreed to be acquired by private equity firms Kohlberg Kravis Roberts and GS Capital Partners in a deal valued at about $8 billion.

Under the terms of the deal, Harman stockholders will be entitled to receive $120 in cash for each share of Harman common stock they hold. As an alternative to receiving the cash consideration, Harman shareholders can chose to exchange some or all of their shares of Harman stock for shares in the new corporation incorporated by acquirers KKR and GSCP as part of the deal to buy Harman.

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