#United States #Irvine #Masimo Corporation #HARMAN International #Sound United

Masimo Corporation Sells Consumer Audio Business to HARMAN International

In a significant move within the healthcare and consumer audio sectors, Masimo Corporation has officially announced the sale of its Sound United business to HARMAN International for a total purchase price of $350 million. This decision reflects Masimo's strategic focus on its core healthcare operations and commitment to innovation in the medical field.

The announcement was made on May 6, 2025, by Masimo's executive leadership, including Quentin Koffey, Vice Chairman of the Board, who emphasized the importance of finding the right home for the consumer audio business. This sale represents a crucial step towards positioning Masimo for future growth while maintaining disciplined margins. The company has set its sights on accelerating revenue growth and continuing its tradition of innovation.

Dave Rogers, President of HARMAN's Lifestyle division, expressed excitement about the acquisition, stating that this step will enhance HARMAN's core audio business across various product categories, including home audio, headphones, high-fidelity components, and car audio systems. The integration of Sound United's renowned audio brands, such as Bowers & Wilkins, Denon, and Marantz, with HARMAN's iconic labels will result in a powerhouse collection of audio products available to consumers.

With Sound United, HARMAN is poised to expand its reach in the audio industry. The collaboration between the two companies leverages their shared commitment to excellence in audio technology and aims at delivering innovative products that cater to consumers’ demands. This acquisition will allow HARMAN to strengthen its value proposition and provide a broader range of options to audio enthusiasts and casual listeners alike.

Katie Szyman, CEO of Masimo, also highlighted the alignment of this transaction with the company’s goal of addressing unmet clinical needs while enhancing operational efficiencies. She believes that Sound United will thrive under HARMAN’s leadership, ensuring continued growth and success.

The transaction is anticipated to close by the end of 2025, pending necessary regulatory approvals. This sale follows a comprehensive review of Masimo's consumer audio division and aligns with the organization's strategic shift towards prioritizing its professional healthcare services.

Centerview Partners LLC and Morgan Stanley & Co. LLC acted as financial advisors to Masimo during this transaction, while Sullivan & Cromwell LLP provided legal advisory support. The deal underscores Masimo's commitment to its core business areas and its vision for future innovations.

Conclusion

As Masimo Corporation restructures its focus on healthcare technology, the sale of Sound United to HARMAN International marks a significant milestone. This transition not only allows Masimo to zero in on its medical efforts but also strengthens HARMAN's position within the competitive consumer audio landscape. Both companies are expected to gain from this strategic move, benefiting consumers with a wider range of quality audio products while advancing healthcare technology.