Masimo (Nasdaq: MASI) announced today that it completed the previously announced sale of its Sound United consumer audio business.
The Irvine, California–based home health monitoring company sold the business to Harman International, a Samsung Electronics subsidiary. It plans to use proceeds to prioritize share repurchases.
In May, the company shared its plans to sell the consumer audio segment to Harman for approximately $350 million. Masimo had long been attempting to sell off the consumer business acquired through the nearly three-and-a-half-year-old $1 billion acquisition of Sound United and its high-end audio and home theater systems.
Last year, the company shared that an undisclosed potential joint venture partner had offered a $850–950 million purchase price for a majority stake in its consumer business. It said last August that multiple suitors stepped forward with interest in the business. Efforts to sell the business came amid pressure from activist investors that eventually ousted Masimo founder and CEO Joe Kiani a year ago.
Under new CEO Katie Szyman, the company moved forward with the deal to center its focus on healthcare technologies.
“The completion of the Sound United sale is an important milestone in our ongoing efforts to focus on our core professional healthcare business,” said Szyman. “With this chapter behind us, we are even better positioned to broaden Masimo’s patient impact, accelerate growth, and deliver stronger margins.
“We have exciting opportunities ahead, and I am confident that we will be able to continue building on our positive momentum to deliver value for all stakeholders. Finally, on behalf of the entire leadership team, I want to thank the Sound United team for their dedication and wish them continued success as part of Harman.”
