Masimo Seeks to Separate Consumer Business

Masimo’s board of directors has authorized management to evaluate a proposed separation of its consumer business.
 
The separation is expected to include its consumer audio and consumer health products, including the Stork baby monitor and Freedom smartwatch and brand. Masimo will keep its professional healthcare and telehealth products.
 
Joe Kiani is anticipated to stay chairman and CEO of Masimo and be named chairman of the newly created company. This includes audio products maker Sound United, which Masimo acquired for about $1 billion in 2022.
 
Masimo said it will aim to complete the separation as soon as it’s feasible, subject to completion of due diligence, definitive agreements, SEC filings, and other applicable regulatory approvals.
 
“I truly believe there is tremendous opportunity to increase not just the lifespan but the healthspan of people by taking healthcare into the home,” said Kiani. “We have unique and necessary technologies to make what I’ve been calling 22nd Century healthcare happen in the next few years. I proposed a separation of the consumer business in January and the Board has agreed to move forward. This approach is expected to maximize shareholder value as well as give both Masimo healthcare and the new consumer business the best path for success.”