Just months after Sound United acquired Melbourne-based distributor Qualifi, it’s emerged that the big US audio Company that also owns Bowers & Wilkins has been sold for $1.4 billion dollars to Masimo Corporation, a leading global medical technology company.
Sound United is one of the world’s largest premium audio Companies. They own brands such as Bowers & Wilkins, Denon, Polk Audio, Marantz, Definitive Technology, Classé, and Boston Acoustics.
It was only a few months ago that Sennheiser was acquired by Swiss medical hearing aid Company Sonova.
Masimo is a global medical technology company that develops and manufactures non-invasive patient monitoring technologies, medical devices, and a wide array of sensors.
Masimo intends to finance the acquisition through a combination of cash on hand and borrowings under a new credit facility, and expects the transaction to close in the middle of 2022, subject to customary closing conditions.
The transaction is expected to be immediately accretive to Masimo’s non-GAAP earnings per share upon closing. P
Joe Kiani, Chairman and Chief Executive Officer of Masimo, said “Sound United is a company with a premium consumer technology platform and iconic, universally-recognized brands like Bowers and Wilkins, Denon, Polk Audio and Marantz, as well as an integrated wireless software platform, HEOS, connecting devices and networks in the home”.
He added “The Sound United transaction aligns with Masimo’s priorities, objectives and vision by advancing our strategy of enabling connected monitoring across both the hospital and home. We see significant opportunities to cross-leverage technologies, bringing Masimo’s clinically superior solutions into the home and on-the-go as well as bringing Sound United’s premium technologies into the hospital to advance our hospital automation connectivity and cloud-based technologies. The technology and expertise within Sound United will serve us well as we aim to augment our Masimo SafetyNet strategy. Their well-established reputation and presence in the home can help us accelerate adoption of our wearables, and integrated, home-based telemedicine solutions.”
The Company claims they plan on leveraging Sound United’s expertise in consumer electronics and global distribution to expand its own consumer products business.
The Sound United press release claims that the two brands are linked by a commitment to the highest production standards and a focus on unparalleled audio quality and performance.
“I have long been a fan (and proud owner) of Sound United’s iconic brands and am honoured to steward them through the next generation of technological evolution,” Masimo Founder, Chair & CEO Joe Kiani commented. “Masimo shares Sound United’s commitment to providing innovative, best-in-class products and experiences, with a relentless focus on improving the consumer experience.”
Management claim that a combined Masimo and Sound United will create stronger relationships with consumers and seamlessly deliver high-quality consumer products.
The medical Company said they will leverage Sound United’s expertise across consumer channels to accelerate distribution of Masimo’s expanding portfolio of consumer products.
“We’re excited about this transaction and see significant potential in combining our expertise in consumer electronics and audio engineering with Masimo’s strengths in healthcare and monitoring,” said Kevin Duffy, CEO of Sound United. “With our track record of industry-first innovation, best-in-class products, and a global distribution network, we are the ideal partner for Masimo to transform the consumer healthcare experience. I look forward to working with the Masimo team to enrich the lives of consumers.”
The transaction is expected to close near the middle of 2022, subject to the receipt of regulatory approvals and other customary closing conditions.The Company said that earlier this week they signed a definitive merger agreement to acquire Viper Holdings Corporation, which owns Sound United.
Post-closing, Kevin Duffy will continue to lead Sound United, reporting directly to Masimo Chairman and Chief Executive Officer, Joe Kiani.
