Founded in 2012, Sound United is a portfolio company of Boston-based private equity firm Charlesbank Capital Partners, LLC. Effectively, Masimo has entered into a definitive merger agreement to acquire Viper Holdings Corporation, which owns Sound United. Sound United is now one of the world’s largest portfolio audio companies, resulting from an aggressive acquisition and consolidation strategy in the consumer audio space. Sound United currently operates iconic consumer brands such as Bowers & Wilkins, Denon, Polk Audio, Marantz, Definitive Technology, Classé, and Boston Acoustics.
The acquisition of Sound United’s iconic audio brands by the Irvine, CA-based medical company, provides Masimo with access to a strong consumer technology channel, with great potential for new health-oriented products. It allows Masimo to leverage Sound United’s expertise and accelerate distribution of Masimo’s expanding portfolio of consumer products. Sound United's global distribution platform expands across online, retail and custom installation channels. And Masimo is particularly interested in the HEOS cloud-connected home ecosystem, and Sound United's state-of-the-art R&D capabilities, focused on creating the highest-quality consumer products with world-class industrial design.
"I have long been a fan (and proud owner) of Sound United’s iconic brands and am honored to steward them through the next generation of technological evolution,” says Joe Kiani, Masimo Founder, Chairman and Chief Executive Officer. “Masimo shares Sound United’s commitment to providing innovative, best-in-class products and experiences, with a relentless focus on improving the consumer experience.”
"Sound United is a company with a premium consumer technology platform and iconic, universally-recognized brands like Bowers and Wilkins, Denon, Polk Audio and Marantz, as well as an integrated wireless software platform, HEOS, connecting devices and networks in the home. The Sound United transaction aligns with Masimo’s priorities, objectives and vision by advancing our strategy of enabling connected monitoring across both the hospital and home. We see significant opportunities to cross-leverage technologies, bringing Masimo’s clinically superior solutions into the home and on-the-go as well as bringing Sound United’s premium technologies into the hospital to advance our hospital automation connectivity and cloud-based technologies. The technology and expertise within Sound United will serve us well as we aim to augment our Masimo SafetyNet strategy. Their well-established reputation and presence in the home can help us accelerate adoption of our wearables, and integrated, home-based telemedicine solutions,” Joe Kiani adds.
According to the agreement announcement, a combined Masimo and Sound United will "create stronger relationships with consumers and seamlessly deliver high-quality consumer products." The resulting company will benefit from "a world-class professional and consumer engineering function focused on products that make an impact on the lives of our consumers."
“We’re excited about this transaction and see significant potential in combining our expertise in consumer electronics and audio engineering with Masimo’s strengths in healthcare and monitoring,” says Kevin Duffy, CEO of Sound United. “With our track record of industry-first innovation, best-in-class products, and a global distribution network, we are the ideal partner for Masimo to transform the consumer healthcare experience. I look forward to working with the Masimo team to enrich the lives of consumers.”
Masimo will pay approximately $1.025 billion, subject to adjustments, for the acquisition. The transaction is expected to close near the middle of 2022, subject to the receipt of regulatory approvals and other customary closing conditions. Post-closing, Kevin Duffy will continue to lead Sound United, reporting directly to Joe Kiani.
www.masimo.com
www.soundunited.com
