Masimo Sells Non-invasive Monitoring Business for $100M

TL;DR

Masimo selling off a business unit for $100M. Focus shift incoming.

AI Summary

Masimo Corporation announced on July 2, 2024, that it has entered into a definitive agreement to sell its Non-invasive Monitoring Technologies business to an affiliate of Audio-Technica Corporation for $100 million. The transaction is expected to close in the third quarter of 2024, subject to customary closing conditions.

Why It Matters

This divestiture signals a strategic shift for Masimo, potentially allowing them to focus on other areas of their business and impacting the competitive landscape for non-invasive monitoring technologies.

Risk Assessment

Risk Level: medium — The sale of a business unit can indicate strategic challenges or a need for capital, and the success of the integration with Audio-Technica is yet to be determined.

Key Numbers

• $100 million — Sale Price (Proceeds from the sale of the Non-invasive Monitoring Technologies business.)

Key Players & Entities

• Masimo Corporation (company) — Seller
• Audio-Technica Corporation (company) — Buyer
• $100 million (dollar_amount) — Sale price
• July 2, 2024 (date) — Agreement date
• third quarter of 2024 (date) — Expected closing period

FAQ

Key Financial Figures

• $0.001 — nge on which registered Common Stock, $0.001 par value MASI The Nasdaq Stock Mar
• $850 million — offer a purchase price in the range of $850 million to $950 million for Masimo's consumer b
• $950 million — e price in the range of $850 million to $950 million for Masimo's consumer business, on a ca

Filing Documents

• ea0209051-8k_masimo.htm (8-K) — 35KB
• image_001.jpg (GRAPHIC) — 10KB
• 0001213900-24-059677.txt ( ) — 232KB
• masi-20240702.xsd (EX-101.SCH) — 3KB
• masi-20240702_lab.xml (EX-101.LAB) — 33KB
• masi-20240702_pre.xml (EX-101.PRE) — 22KB
• ea0209051-8k_masimo_htm.xml (XML) — 3KB

Forward-Looking Statements

Forward-Looking Statements This Form 8-K includes forward-looking statements as defined in Section 27A of the Securities Act, and Section 21E of the Exchange Act in connection with the Private Securities Litigation Reform Act of 1995. These forward-looking statements include, among others, statements regarding the Potential JV, the status of ongoing discussions between Masimo and the Potential JV Partner, the scope of the intellectual property rights that may be granted to the Potential JV, the ability of the parties to enter into the Potential JV, the exclusivity period between the parties with respect to Potential JV, the Potential JV Partner's interest in acquiring a majority of Masimo's consumer business, the ability of the Potential JV Partner to identify one or more strategic investment partners, the terms of the Potential JV transaction and any potential separation of Masimo's consumer business, including a possible spin-off of the consumer business. These forward-looking statements are based on current expectations about future events affecting Masimo and are subject to risks and uncertainties, all of which are difficult to predict and many of which are beyond Masimo's control and could cause Masimo's actual results to differ materially and adversely from those expressed in Masimo's forward-looking statements as a result of various risk factors, including, but not limited to: the risk that the Potential JV may not be entered into or completed in a timely manner or at all; the risk that the terms of the Potential JV may differ materially from the preliminary terms outlined in this Form 8-K, including with respect to the expected purchase price, valuation, potential strategic partners, due diligence and intellectual property licenses; the failure to receive, on a timely basis or otherwise, any required approvals of the Potential JV by the Board and/or regulatory authorities; the effect of the announcement or pendency of the Potential JV on Masimo's ability t

SIGNATURES

SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, Masimo Corporation has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized. MASIMO CORPORATION Date: July 8, 2024 By: /s/ MICAH YOUNG Micah Young Executive Vice President & Chief Financial Officer (Principal Financial Officer) 3

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View this 8-K filing on SEC EDGAR