Masimo Sells Consumer Audio Business to Samsung's Harman for $350m

Masimo is selling its consumer audio business, Sound United, to Harman International, a subsidiary of Samsung Electronics, for $350m in cash. The divestiture will allow Masimo to focus on its core professional healthcare segment. The transaction is expected to be completed by the end of 2025 and will create synergy with Samsung's existing mobile, television, and home appliance businesses.

Masimo Corporation (NASDAQ: MASI), a leading global medical innovator, has announced the sale of its consumer audio business, Sound United, to HARMAN International, a wholly-owned subsidiary of Samsung Electronics Co., Ltd. The transaction is expected to close by the end of 2025, subject to regulatory approvals. The aggregate purchase price is $350 million in cash.

The sale follows a strategic review of Masimo’s consumer audio business and aligns with the company’s focus on driving innovation in its core professional healthcare segment. Quentin Koffey, Vice Chairman of Masimo’s Board of Directors, stated, “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.”

Dave Rogers, President of HARMAN’s Lifestyle division, 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.”

Katie Szyman, Chief Executive Officer of Masimo, added, “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.”

The acquisition is expected to create synergy with Samsung's existing mobile, television, and home appliance businesses, strengthening HARMAN’s global leading position in the consumer audio market. The market is projected to grow from $60.8 billion in 2025 to $70 billion by 2029 [2].

Masimo will continue to focus on its core professional healthcare segment, which includes innovative measurements, sensors, patient monitors, and automation and connectivity solutions. The transaction is subject to the satisfaction or waiver of certain closing conditions, including the receipt of any required regulatory approvals [1].

Centerview Partners LLC and Morgan Stanley & Co. LLC served as financial advisors to Masimo, while Sullivan & Cromwell LLP served as legal advisor.

References:
[1] https://www.businesswire.com/news/home/20250506528578/en/Masimo-to-Sell-Consumer-Audio-Business-to-HARMAN-International
[2] https://indianexpress.com/article/technology/tech-news-technology/samsung-electronics-says-unit-harman-acquires-masimos-audio-business-for-350-mln-9989911/lite/