Paliwal

STAMFORD, Conn. — Harman International Industries Inc. has sold its software operating unit, QNX Software Systems to device giant Research in Motion Ltd. for $200 million.

"We are very pleased to have found an excellent company that will take QNX to its next level of growth," Dinesh C. Paliwal, chairman, president, and chief executive officer of Harman, said in a statement about the deal. "This move allows Harman to continue its relationship with QNX and the advanced software solutions it provides to Harman and our customers. At the same time, this deal achieves value for all stakeholders and is an important step in a new strengthened relationship with RIM."

The Waterloo, Ontario-based RIM is a designer, manufacturer and marketer of wireless products, mostly notably the BlackBerry. Other products include software development tools and radio-modems. The company has offices across the world and is traded on both the NASDAQ Stock Market and the Toronto Stock Exchange. It reported $15 billion in revenue in 2009.

Harman's main business is making automotive audio and "infotainment" systems for automakers worldwide. The company works with 15 brands including AKG, Harman Kardon, Infinity, JBL, Lexicon and Mark Levinson. More than 20 million automobiles on the road are equipped with Harman products. The company employs 11,000 people and is headquartered in Stamford, Conn. It is traded on the New York Stock Exchange and reported $3.2 billion in sales in 2009.

According to the Harman, the sale of QNX Software is part of the company's strategy to pursue growth in emerging markets such as China, India and Brazil with new infotainment system products, as well as global navigation and connectivity products for luxury vehicles. Harman said it already has contracts for infotainment and audio products for more than $10 billion.

Shortly following the sale of QNX Software, Harman jumped into action on this strategy buying Brazilian company Eletronica Selenium.

Eletronica Selenium, founded in 1958, manufactures and sells professional loudspeakers including line arrays, screen and portable systems, along with related technologies for both the public sound reinforcement sector and automotive market.

Selenium's approximately 450 employees at facilities in northern and southern Brazil will transfer to Harman, who will also assume operations of Selenium sales offices serving the United States and Europe. Selenium sells its products through 30 distributors in Brazil and through two distribution and logistics centers in the United States.

"Selenium is a proud addition to the Harman family, and we look forward to expanding our technologies throughout this growing and important market," Harman head Paliwal, said in a statement about the deal. "Harman's rich product portfolio, together with Selenium's established market presence in Brazil and Latin America, will drive new business opportunities across the automotive, consumer, and professional markets."

Former Selenium chief executive Rodrigo Rihl Kniest will join Harman as the company's country manager for Brazil. "Our recent success stories include the Pan American Games, Cartagena Music Festival, and numerous cinemas, retail and infrastructure facilities," Kniest said. "Leveraging Harman's superior track record, we see tremendous opportunities around the FIFA World Cup and Olympic Games in Rio de Janeiro, the Brazilian Carnival and similar venues."

Paliwal has served as president and CEO of Harman since he joined the company in 2007. He became chairman in May 2008. Before joining Harman, he was president of global power and automation technology firm ABB Ltd.

He has a master's degree in engineering from the Indian Institute of Technology, Roorkee; and a master's degree in applied science and engineering and a master's degree in business administration in finance from Miami University in Ohio. He also has a bachelor's degree from St. Johns College, Agra University, India.