Masimo, a publicly traded medical technology corporation, today announced that it has entered into a definitive agreement to sell its Sound United consumer audio business to HARMAN International (“HARMAN”), a wholly-owned subsidiary of Samsung Electronics Co., for an aggregate purchase price of $350 million in cash, subject to certain adjustments. Masimo diversified their medical portfolio to include audio distribution with the acquisition of Sound United in 2022 paying $1 billion. The sale follows the previously announced review of Masimo’s consumer audio business and will support the Company’s strategic focus on driving innovation in its core professional healthcare segment. Wall Street had been actively hammering Masimo’s share value by not viewing the diversification away from the company’s medical business as a prudent strategy. When Masimo announced the purchase of Sound United, investors shaved roughly $5 billion off Masimo’s market value in a single day. Masimo’s shares are up almost 50% since the announcement that Masimo would be divesting from the audio industry. The transaction is expected to close by the end of 2025, subject to receiving necessary regulatory approvals.
Quentin Koffey, Vice Chairman of Masimo’s Board of Directors, stated, “Finding the right home for this business has been a stated priority of the new Board from day one, and this transaction represents an important milestone as we continue to position the Company to achieve our goals of accelerating revenue growth while delivering disciplined margins. Masimo has tremendous opportunities ahead and we are confident we have the right healthcare-focused strategy, experienced leadership team and culture of innovation in place to build on our significant positive momentum.”
,“This acquisition represents a strategic step forward in the expansion of HARMAN’s core audio business and footprint across key product categories such as Home Audio, Headphones, Hi-fi components, and Car Audio” stated Dave Rogers, President of HARMAN’s Lifestyle division. “It complements our existing strengths and opens new avenues for growth. Sound United’s portfolio of world-class audio brands including Bowers & Wilkins, Denon and Marantz, will join HARMAN’s iconic family of brands, including JBL, Harman Kardon, AKG, Mark Levinson, Arcam, and Revel. Built on a shared legacy of innovation and excellence in audio technology, this combined family of brands, together with the talented employees of both companies, will deliver complementary audio products, strengthen our value proposition and offer more choices to consumers.”
“Since I took over as CEO, a key objective has been refocusing our business to ensure we are allocating time and resources to areas of unmet clinical need and driving growth and operational efficiencies” stated Katie Szyman, Chief Executive Officer of Masimo,. “This transaction aligns with these objectives. Our consumer audio business and its talented team will be well positioned for growth and success under HARMAN’s leadership.”
The transaction is subject to the satisfaction or waiver of certain closing conditions, including the receipt of any required regulatory approvals. HARMAN has a workforce of approximately 30,000 people across the Americas, Europe, and Asia. In 2017, HARMAN became a wholly owned subsidiary of Samsung Electronics Co., Ltd.