Masimo Corporation announced today in a press statement that it has entered into a definitive agreement to sell its Sound United consumer audio business to Harman International, a wholly-owned subsidiary of Samsung Electronics Co Ltd for US$350 million in cash, subject to certain adjustments, Forbes reported.
The sale includes the Bowers & Wilkins, Denon, Polk and Marantz brands which will now join Harman’s portfolio of premium audio brands which includes JBL, Harman Kardon, AKG, Mark Levinson, Arcam, and Revel.
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.”
Dave Rogers, President of Harman’s Lifestyle division, added, “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.”
Katie Szyman, Chief Executive Officer of Masimo, said, “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. 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.”
