Samsung Electronics subsidiary Harman International has agreed to acquire the Sound United consumer audio business of US health technology and consumer electronics firm Masimo Corporation for $350 million in cash.
The deal further expands Harman’s audio portfolio after previously acquiring Roon, a music management, discovery, and streaming platform, in 2023.
Harman’s portfolio of brands in the audio industry include AKG, Bang & Olufsen, Harman Kardon, Infinity Audio and JBL. Harman was acquired by Samsung Electronics for $8 billion in March 2017.
The Masimo deal, announced Wednesday (May 6), will transfer ownership of several audio brands including Bowers & Wilkins, Denon and Marantz to Harman.
Quentin Koffey, Vice Chairman of Masimo’s Board of Directors, said: “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.”
“Finding the right home for this business has been a stated priority of the new Board from day one.”
Quentin Koffey, Masimo
“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,” Koffey added.
For Samsung, the acquisition comes as the company seeks to capture a larger share of the global audio market, which it said is projected to grow to about $70 billion by 2029 from about $60.8 billion this year.
“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.”
Dave Rogers, Harman
Harman, which is said to hold a roughly 60% market share in the portable audio segment, plans to fold the acquired Sound United brands into its Lifestyle division, Samsung said. The deal is expected to close by the end of 2025.
Sound United’s Bowers & Wilkins brand, founded in England in 1966, produces the Nautilus loudspeaker, which retails for $100,000 per unit, as well as the wireless speaker Zeppelin. Bowers & Wilkins has David Beckham as a brand ambassador, Samsung noted.
Masimo acquired these audio brands via its $1.025 billion purchase of Sound United in 2022.
Dave Rogers, President of Harman’s Lifestyle division, said: “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.”
Rogers added: “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.”
For Masimo, the deal comes as the company has been shifting its focus to its core healthcare business. In August 2024, the company hinted at plans to divest its consumer audio business.
“Since I took over as CEO, a key objective has been refocusing our business to ensure we are allocating time and resources to areas of unmet clinical need and driving growth and operational efficiencies.”
Katie Szyman, Masimo
Katie Szyman, Chief Executive Officer of Masimo, added: “Since I took over as CEO, a key objective has been refocusing our business to ensure we are allocating time and resources to areas of unmet clinical need and driving growth and operational efficiencies. This transaction aligns with these objectives. Our consumer audio business and its talented team will be well positioned for growth and success under Harman’s leadership.”
Nasdaq-listed Masimo produces medical equipment, including sensors, patient monitors, and automation and connectivity products.
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