TLDR: Harman International, a subsidiary of Samsung Electronics, has agreed to acquire Masimo Corp.’s Sound United consumer audio business for $350 million. This strategic move will integrate renowned audio brands like Bowers & Wilkins, Denon, and Marantz into Harman’s portfolio, while Masimo refocuses on its core healthcare technology business. The deal is expected to close by the end of 2025.
In a significant development within the audio and healthcare technology sectors, Harman International, a wholly-owned subsidiary of Samsung Electronics Co., Ltd., has entered into a definitive agreement to acquire the Sound United consumer audio division from U.S. medical device company Masimo Corporation. The all-cash transaction is valued at $350 million and is anticipated to conclude by the end of 2025, pending customary closing conditions and regulatory approvals.
This acquisition marks a strategic pivot for both companies. For Masimo, the divestiture of Sound United, which it had acquired in 2022 for $1.025 billion, is a clear step towards sharpening its focus on its core professional healthcare 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 CEO Katie Szyman further emphasized this, adding, “Our goal has been to direct resources where they matter most—towards unmet clinical needs. Under HARMAN, Sound United and its talented team will have the right platform to thrive.”
For Harman International, this acquisition represents a substantial expansion of its already robust audio empire. Sound United brings with it a prestigious portfolio of consumer audio brands, including Bowers & Wilkins, Denon, Marantz, and Polk Audio. These brands will complement Harman’s existing lineup, which features iconic names such as JBL, Harman Kardon, AKG, Bang & Olufsen, and Infinity Audio. Dave Rogers, President of HARMAN’s Lifestyle division, highlighted the strategic importance of the deal, stating, “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.” He added that the move “complements our existing strengths and opens new avenues for growth,” and that “Sound United’s legacy of excellence aligns perfectly with HARMAN’s vision. Together, we will deliver a broader range of high-quality audio experiences to consumers globally.”
Samsung’s broader strategy behind this move is to capture a larger share of the global audio market, which is projected to grow from approximately $60.8 billion this year to about $70 billion by 2029. Harman, already a dominant player with an estimated 60% market share in the portable audio segment, aims to further solidify its position across various audio segments.
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Masimo received financial advisory services from Centerview Partners LLC and Morgan Stanley & Co. LLC, with Sullivan & Cromwell LLP serving as its legal advisor for the transaction.
