On December 27, 2023, Masimo showcased its logo at its headquarters in Irvine, California. The medical technology company announced that it is considering spinning off its consumer business, which includes health and audio products. This news caused shares to rise by 13% in after-hours trading.
Masimo is known for manufacturing equipment like pulse oximeters and smartwatches under its brand. In 2022, the company acquired Sound United LLC for $1 billion. This acquisition was met with negative reactions from investors, causing shares to drop by 37% and erasing $5 billion in market value.
Following the acquisition, Quentin Koffey’s Politan Capital Management acquired a stake in Masimo with plans to prompt changes within the company. Despite the spinoff of its consumer business, Masimo intends to retain its healthcare and telehealth products while aiming to enhance the profitability of the healthcare division.
Current CEO Joe Kiani is expected to continue leading the company as chief executive and take on a new role as chairman of the newly formed company resulting from the spinoff. Masimo stated that it anticipates completing the separation “as soon as feasible.”
Headquartered in Irvine, California, Masimo has been in the spotlight after filing a lawsuit against Apple in October. The lawsuit alleges that Apple stole trade secrets related to technology for measuring blood-oxygen levels in its watches and violated Masimo’s patents.
