It’s a news story that makes you sit up and take notice: Masimo Corporation is to take over Sound United LLC. Sound United LLC. has now announced this itself, with the peculiarity being first and foremost that Masimo Corporation is a Californian medical technology company.
Takeovers are nothing unusual for Sound United LLC., after all, the US consumer electronics group has caused a stir with numerous takeovers in recent years. Sound United LLC. not only acquired the D&M Group and with it brands such as Denon, Marantz and HEOS, but also Bowers & Wilkins and even planned to take over other established Japanese brands such as Pioneer and Onkyo, although, as we know, nothing came of it in the end. Sound United LLC. sees itself as a portfolio company of the Boston-based private equity firm Charlesbank Capital Partners LLC. The group manages the brands Denon, Marantz, HEOS, Polk Audio, Definitive Technology, Classé, Boston Acoustics and Bowers & Wilkins.
Now Sound United LLC. is once again making headlines with an acquisition, although this time it’s not a matter of Sound United LLC. adding another company to its own brand portfolio, rather Sound United LLC. itself is now up for sale.
Masimo Corporation to take over Sound United LLC.
As Sound United LLC. announced in a press release, the Californian company Masimo Corporation is to take over Sound United LLC. A corresponding agreement has already been concluded, which provides for the said takeover in the middle of 2022, subject to the approval of the relevant control bodies.
The amazing thing about this story is that Masimo Corporation is a company that has absolutely nothing to do with consumer electronics, not even in the broadest sense. In fact, Masimo Corporation is a global medical technology company founded in 1989 by Joe E. Kiani in California.
Today, it is a publicly traded company with over 6,000 employees, headquartered in Irvine, California, and is considered one of the most innovative of its kind in the industry.
But what connects the group with the product portfolio of Sound United LLC. is probably not really comprehensible to anyone at first glance. Only a closer look reveals the motives…
Focus on the distribution network of Sound United LLC.
Sound United LLC. itself cites that it brings significant competitive advantages to this new affiliation through its own global distribution network across online, retail and custom installation channels, a cloud-connected ecosystem, and a state-of-the-art R&D department focused on developing the highest quality consumer products and world-class industrial design.
“I have long been a fan (and proud owner) of Sound United’s legendary brands and am honored to lead them through the next generation of technological evolution. Masimo shares Sound United’s commitment to delivering innovative, best-in-class products and experiences with a relentless focus on improving the customer experience.”Joe Kiani, Founder, Chairman and CEO of Masimo Corporation
From Masimo Corporation’s perspective, it says the merger of Masimo Corporation and Sound United LLC. will strengthen relationships with consumers and seamlessly deliver high-quality consumer products. The company will leverage Sound United LLC.’s expertise across consumer channels to accelerate distribution of Masimo Corporation’s growing portfolio of consumer products. The resulting company will benefit from a world-class professional and consumer development division focused on products that make an impact on the lives of our consumers.
“We are excited about this transaction and see great potential in combining our expertise in consumer electronics and audio with Masimo’s strengths in health and monitoring. With our track record of industry-leading innovation, best-in-class products and global distribution network, we are the ideal partner for Masimo to improve consumer healthcare. I look forward to working with the Masimo team to enrich consumers’ lives.”Kevin Duffy, CEO of Sound United LLC.
The transaction is expected to close in mid-2022, subject to regulatory approvals and other customary closing conditions. A whopping $1.4 billion is rumored to be in play. After the transaction closes, Kevin Duffy will continue to lead Sound United LLC. and report directly to Masimo Chairman and Chief Executive Officer Joe Kiani, according to a statement from the two companies.
Getting to the point
Two things are noteworthy: first, that Sound United LLC. is now to be acquired itself after numerous acquisitions by the company, and second, that it is a medical device company, of all things, that Sound United LLC. now appears to be acquiring. The new owner Masimo Corporation will hardly be a household name, as the company has had nothing whatsoever to do with consumer electronics up to now. The background for the takeover is first and foremost Masimo Corporation’s endeavor to gain a foothold directly in the consumer market for its patient monitoring systems and to be able to rely on the structures of Sound United LLC. for this. So it will be very exciting…