US-based Masimo has agreed to sell its consumer audio business, Sound United, to Harman International, a subsidiary of Samsung Electronics, for $350m in cash.
The decision is part of Masimo’s previously declared strategic review of its consumer audio operations.
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Masimo stated that the divestiture will allow it to concentrate more on advancing innovation within its core professional healthcare segment.
Masimo board of directors, vice-chairman Quentin Koffey said: “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.”
Subject to certain conditions, including the necessary regulatory consents, the transaction is expected to be concluded by the end of 2025.
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By GlobalDataSamsung expects the acquisition to create synergy with its existing mobile, television and home appliance businesses.
Harman’s Lifestyle division president Dave Rogers said: “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.
“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.”
Centerview Partners and Morgan Stanley acted as financial advisors, while Sullivan & Cromwell provided legal counsel to Masimo for this transaction.
Earlier this year, Nokia signed a multi-year patent licence agreement with Samsung to allow the use of its video technologies in Samsung’s television products.
