News broke overnight that Masimo Corporation has entered into a definitive agreement to sell its consumer audio business to HARMAN International, the wholly-owned subsidiary of Samsung, for an aggregate purchase price of US$350 million in cash, "subject to certain adjustments". According to an official statement, the transaction is expected to close by the end of 2025, subject to receiving necessary regulatory approvals.

Masimo acquired Sound United (Bowers & Wilkins, Denon, Polk Audio, Marantz, Definitive Technology, Classé, and Boston Acoustics) back in 2022 for a deal that was said at the time to be worth over US$1.03 billion. The company said it would benefit from "leveraging Sound United's expertise in consumer electronics and global distribution to expand its own consumer products business".

However, with the benefit of hindsight, that was not to be the case. Masimo Founder and CEO Joe Kiani was known for being an audiophile himself, and the rest of the Masimo board expressed concern about the direction the company known for medical devices was headed. Losses in the consumer audio business had been mounting, and after pressure from the rest of the board, Kiami stepped down from the company he founded in September 2024. 

Since then, Masimo has been actively looking to sell its Consumer Audio business.

Quentin Koffey, Vice Chairman of Masimo’s Board of Directors, stated:

Finding the right home for this business has been a stated priority of the new Board from day one, and 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. Masimo has tremendous opportunities ahead and we are confident we have the right healthcare-focused strategy, experienced leadership team and culture of innovation in place to build on our significant positive momentum.

Dave Rogers, President of HARMAN’s Lifestyle division, added:

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. Sound United’s portfolio of world-class audio brands including Bowers & Wilkins, Denon and Marantz, will join HARMAN’s iconic family of brands, including JBL, Harman Kardon, AKG, Mark Levinson, Arcam, and Revel. Built on a shared legacy of innovation and excellence in audio technology, this combined family of brands, together with the talented employees of both companies, will deliver complementary audio products, strengthen our value proposition and offer more choices to consumers.

The transaction is subject to the satisfaction or waiver of certain closing conditions, including the receipt of any required regulatory approvals.

The Samsung-owned Harman porfolio includes audio brands JBL, Harman/Kardon, AKG, Infinity, Mark Levinson, Arcam, Austere, Crown, DBC, Lexicon, Martin, Revel, and Soundcraft. If the new deal goes ahead, Harman will add Bowers & Wilkins, Denon, Marantz, Polk, Definitive Technology, Classe, HEOS, and Boston Acoustics, making it the largest audio company in the world.

This story is still developing, stay tuned ...