When Masimo shelled out $1.03 billion to acquire Sound United just three years ago, plenty of eyebrows went up—inside the company and across the audio and medical industries alike. A leading name in professional healthcare tech buying a portfolio of legacy hi-fi brands like Bowers & Wilkins, Denon, Marantz, Polk Audio, Classe, Boston Acoustics, and HEOS? It was a move that felt more like a plot twist than a strategic fit, and not everyone bought the synergy pitch.
Now, in a move that many suspected might come sooner, Masimo is unwinding that decision—announcing the sale of Sound United to HARMAN International (a Samsung subsidiary) for $350 million in cash.
That’s a steep markdown from the billion-dollar price tag Masimo paid in 2022, and it signals a sharp pivot back to what it knows best: professional healthcare innovation.
The transaction is expected to close by the end of 2025, pending regulatory approvals and other customary closing conditions. Masimo was advised by Centerview Partners and Morgan Stanley, with legal counsel provided by Sullivan & Cromwell LLP.
Some will see this as a course correction. Others might call it a quiet admission that building bridges between pulse oximeters and premium audio was a stretch too far.
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 has tremendous opportunities ahead and we are confident we have the right healthcare-focused strategy, experienced leadership team and culture of innovation in place to build on our significant positive momentum.”
Dave Rogers, President of HARMAN’s Lifestyle division, said, “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. It complements our existing strengths and opens new avenues for growth. Sound United’s portfolio of world-class audio brands will join HARMAN’s iconic family of brands, including JBL, Harman Kardon, AKG, Mark Levinson, Arcam, and Revel. Built on a shared legacy of innovation and excellence in audio technology, this combined family of brands, together with the talented employees of both companies, will deliver complementary audio products, strengthen our value proposition and offer more choices to consumers.”
Katie Szyman, Chief Executive Officer of Masimo, said, “Since I took over as CEO, a key objective has been refocusing our business to ensure we are allocating time and resources to areas of unmet clinical need and driving growth and operational efficiencies. This transaction aligns with these objectives. Our consumer audio business and its talented team will be well positioned for growth and success under HARMAN’s leadership.”
The Bottom Line
The original acquisition was nothing short of dynamite to Masimo’s stock. Investors weren’t exactly thrilled about a med-tech giant diving headfirst into the deep end of consumer A/V. To many observers—and to those of us already waist-deep in the industry—it looked like a marriage doomed to fail.
The strategic logic never quite landed, and the cultural divide between clinical-grade devices and audiophile-grade components proved too wide to bridge. What was pitched as diversification quickly became distraction.
With the sale to HARMAN, all of Sound United’s storied brands will now fall under the umbrella of Samsung—one of the largest technology conglomerates on the planet—and be guided by a leadership team that eats, sleeps, and breathes consumer audio and video.
On paper, it’s a better long-term home for brands like Bowers & Wilkins, Marantz, and Denon. But it’s not without challenges. One immediate issue is the overlapping competition among these brands, especially in key categories like AV receivers, wireless streaming, and home theater. Managing internal rivalries without cannibalizing the portfolio could be HARMAN’s next great balancing act.
For more information: Harman Acquires Sound United Brands
Related Reading
- Sound United Acquired By Masimo Corporation
- Marantz’s Grand Horizon And Horizon Wireless Speakers March Boldly Into The Future: Preview
- Bowers & Wilkins Px7 S3 Headphones: Better Sound, Better Noise Cancellation, But At What Cost?
About Masimo
Masimo (NASDAQ: MASI) is a global medical technology company that develops and produces a wide array of industry-leading monitoring technologies, including innovative measurements, sensors, patient monitors, and automation and connectivity solutions. In addition, Masimo Consumer Audio is home to eight legendary audio brands, including Bowers & Wilkins, Denon, Marantz, and Polk Audio. Our mission is to improve life, improve patient outcomes, and reduce the cost of care.
About HARMAN
HARMAN (harman.com) designs and engineers connected products and solutions for automakers, consumers, and enterprises worldwide, including connected car systems, audio and visual products, enterprise automation solutions; and services supporting the Internet of Things. With leading brands including AKG®, Harman Kardon®, Infinity®, JBL®, Lexicon®, Mark Levinson® and Revel®, HARMAN is admired by audiophiles, musicians and the entertainment venues where they perform around the world. More than 50 million automobiles on the road today are equipped with HARMAN audio and connected car systems. Our software services power billions of mobile devices and systems that are connected, integrated and secure across all platforms, from work and home to car and mobile. HARMAN has a workforce of approximately 30,000 people across the Americas, Europe, and Asia. In 2017, HARMAN became a wholly owned subsidiary of Samsung Electronics Co., Ltd.
Anton
May 7, 2025 at 2:52 am
Fascinating and I have to think they thought about your last part before agreeing to spend $350M but perhaps the opportunity to own 7 more legacy brands was just too appealing.
On the plus side, none of these brands will vanish, especially the big 3.
ORT
May 7, 2025 at 2:53 am
Hmmmmmmmm…Marantz is an historically significant marque in the world of fine audio and Denon is nearly as accomplished. This is yet another merger of historical significance as opposed to an hysterical one involving Yorx. 😉
I wish the new conglomerate well and hope to see the use of HEOS shared across platforms. And of course, I am hoping that VU Meters make a classic comeback on a variety of audio equipment.
Saul Marantz is with good reason, one of the founding architects of audio and his company is the soul on which this new group should be based. But then I am quite the Marantz/Denon enthusiast and doubtless others may well think differently.
But I think they would be wrong to do so.
ORT
Ian White
May 7, 2025 at 3:09 am
ORT,
It’s preferable to them disappearing which could have happened. I commend Samsung/Harman for taking the Sound United brands back onto solid ground — although I do think that my commentary about too much overlap is a real issue. Samsung/Harman now own some of the key brands in the space across multiple categories and that makes them the top dog. The Bose/McIntosh/Sonus faber acquisition was small potatoes compared to this.
I agree the Marantz needs to be the focus, along with Bowers. Polk Audio, Definitive and Classe are not exactly exciting to anyone at this point. Sorry to say that but it’s true. Marantz is the high-end brand and Denon is the mid-tier. Bowers offers some of the best wireless IEMs and headphones in the world and imagine those being marketed with Samsung’s extensive range of smart phones. Apple getting shut out here?
IW
Anton
May 7, 2025 at 10:22 am
More than just the focus. I have not read or heard great things about the Marantz wireless speaker you highlighted and some of the other legacy brands like Polk and Definitive have been yesterday’s news for 3 or more years. Who still buys Classe Audio? That Canadian brand stopped being good in the 1990s — and their equipment was exceptional back then.
Catherine Lugg
May 7, 2025 at 11:26 am
Well, this is very interesting. Samsung/Harmon also owns Roon. I would be interested in their strategy to keep all of these “buckets of product” diversified. Or perhaps, HEOS will replace Roon (or vice-versa). With the tariff wars now in full swing, the financial pressures could be quite significant to consolidate. Time will tell.
Ian White
May 7, 2025 at 3:20 pm
Catherine,
“Or perhaps, HEOS will replace Roon (or vice-versa).” Our beloved ORT will go off the deep end if that happens. HEOS is too big for them to dump. Roon is very niche. Which is why they’ll figure out how to keep it separated.
Ian