In a significant move within the audio industry, Masimo Corporation (Nasdaq: MASI) has announced the sale of its Sound United consumer audio business to HARMAN International, a subsidiary of Samsung Electronics, for $350 million. The transaction, expected to close by the end of 2025 pending regulatory approvals, includes renowned audio brands such as Bowers & Wilkins, Denon, Marantz, and Polk Audio.
Strategic Shift for Masimo
The divestiture aligns with Masimo’s strategic refocus on its core professional healthcare business, emphasizing innovation in medical monitoring technologies. Quentin Koffey, Vice Chairman of Masimo’s Board, highlighted the importance of this move:
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.
Katie Szyman, Masimo’s CEO, added that the sale allows the company to allocate resources toward areas of unmet clinical need, driving growth and operational efficiencies.
HARMAN’s Expansion in Premium Audio
For HARMAN, the acquisition strengthens its position in the premium audio market, expanding its portfolio with Sound United’s iconic brands. Dave Rogers, President of HARMAN’s Lifestyle division, stated:
Sound United’s portfolio of world-class audio brands will join HARMAN’s iconic family, including JBL, Harman Kardon, and AKG, delivering complementary audio products and offering more choices to consumers.
The integration of brands like Bowers & Wilkins and Denon with HARMAN’s existing lineup is expected to enhance its offerings across home audio, headphones, hi-fi components, and car audio categories.
Impact on the Audio Industry
This acquisition marks a pivotal moment for the high-end audio market, combining two powerhouse portfolios known for their legacy of innovation and excellence. Consumers can anticipate a broader range of premium audio products, while Masimo’s sharpened focus on healthcare innovation promises advancements in medical technology.
