Masimo Divests Sound United to HARMAN for $350 Million
Masimo Corporation has announced the sale of its Sound United consumer audio division to HARMAN International for $350 million in cash, marking a significant shift in the audiophile landscape. This transaction, pending necessary regulatory approvals, underscores Masimo’s strategic pivot towards enhancing its core professional healthcare offerings. Originally acquired for over $1 billion three years ago, Sound United brought together esteemed brands such as Bowers & Wilkins, Denon, Marantz, Polk Audio, Classe, Boston Acoustics, and HEOS under one umbrella.
HARMAN, a subsidiary of Samsung Electronics, aims to bolster its presence in key audio categories through this acquisition. Dave Rogers, President of HARMAN’s Lifestyle division, highlighted the synergy between Sound United’s portfolio and HARMAN’s existing brands like JBL, Harman Kardon, AKG, Mark Levinson, Arcam, and Revel. The integration is expected to enhance product offerings across home audio, headphones, hi-fi components, and car audio, providing audiophiles with a broader array of high-fidelity options. Technical innovations and complementary technologies from both entities are anticipated to drive forward advancements in audio performance and user experience.
Quentin Koffey, Vice Chairman of Masimo’s Board of Directors, emphasized the importance of this move in aligning the company’s resources with its primary focus on healthcare technology. By divesting the consumer audio business, Masimo aims to accelerate revenue growth and maintain disciplined margins within its specialized sector. The decision reflects confidence in Masimo’s ability to sustain innovation and leadership in medical monitoring technologies, ensuring continued advancement in patient care solutions.
Katie Szyman, CEO of Masimo, reaffirmed the company’s commitment to addressing unmet clinical needs through targeted investments and operational efficiencies. The transition of Sound United to HARMAN is expected to position the audio brands for sustained growth and success under new leadership. This strategic realignment allows Masimo to dedicate more resources to its mission of improving patient outcomes and reducing healthcare costs, while HARMAN expands its portfolio with world-class audio brands renowned for their exceptional sound quality and technological prowess.
The deal, advised by Centerview Partners LLC and Morgan Stanley & Co. LLC for Masimo, and Sullivan & Cromwell LLP as legal counsel, is set to close by the end of 2025. This acquisition not only reshapes the competitive dynamics within the consumer audio market but also reinforces HARMAN’s role as a leader in delivering premium audio solutions to discerning listeners worldwide.
