Masimo
(Nasdaq: MASI)
announced today it now has multiple potential suitors for its consumer audio business.
The San Diego–based digital health pioneer previously disclosed that an undisclosed potential joint venture partner had offered a $850–950 million purchase price for a majority stake in its consumer business. Masimo officials planned to negotiate for a better price. In an SEC Form 8-K filed today, Masimo said the exclusivity period in the negotiations had ended, but discussions continued.
Meanwhile, Masimo, in the SEC form, also disclosed that it has separately received unsolicited inbound requests from other potential acquirers of its consumer audio business. Masimo, through its financial advisor Morgan Stanley, plans to begin discussions with the other parties.
The company said in the 8-K: “Masimo’s board of directors will seek and evaluate the optimal value-maximizing structure of the separation of Masimo’s consumer business, including a joint venture, spin-off of the consumer business into a new public company or complete sale of the consumer audio business, either with or without the consumer health business. In all cases, Masimo would retain its professional healthcare and telehealth/telemonitoring products.”
BTIG analysts kept their Buy rating on MASI shares amid the news. MASI shares were up nearly 1.5% to $123.38 apiece by midday trading today. MassDevice‘s MedTech 100 Index was up slightly.
Under pressure from activist investor Politan Capital Management, the maker of pulse oximeters, wearable health trackers, and other health monitoring devices has been looking at options to split off its consumer business, created in 2022 through its $1.025 billion acquisition of Viper Holdings. Viper was the parent company of Sound United and its high-end audio and home theater systems.
In July, Masimo announced that it was delaying its shareholders meeting until Sept. 19, 2024 as it sued Politan over what it claimed were “material misstatements” in heated proxy fight communications. Politan is seeking CEO Joe Kiani’s ouster a year after it won a heated fight for two board seats.
