Earlier this year, a report suggested that Samsung might be preparing for large-scale M&A deals. Now, that report turns out to be true, as the Korean firm is acquiring Masimo’s audio division for $350 million through its subsidiary Harman International. The acquisition process will likely be completed within this year.
In 2017, Samsung acquired Harman International, an American audio electronics company, for $8 billion. Since then, Harman has been operating as an independent subsidiary of Samsung. Now, Harman wants to expand its audio product portfolio by acquiring Masimo’s audio business.
Harman signed a contract to acquire Masimo’s audio business division
In its Newsroom post, Samsung announced that Harman has recently signed a contract to acquire the audio business unit of Masimo in the United States. Masimo’s audio business unit includes Bowers & Wilkins (B&W), Denon, Marantz, Polk, and Definitive Technology. These brands will now join Harman’s existing brand, which includes JBL, Harman Kardon, AKG, Mark Levinson, Arcam, and Revel.
B&W is a premium audio brand known for its high-quality sound. Its flagship product, the ‘Nautilus’ speaker, costs over $100k per unit. Denon is the first company to invent the CD player. Marantz is famous for its premium amplifiers and receivers with high-quality sound.
Meanwhile, Masimo has also confirmed the acquisition through a press release. In its press release, Masimo wrote, “Masimo Corporation (Nasdaq: MASI), a leading global medical innovator, today announced that it has entered into a definitive agreement to sell its Sound United consumer audio business to HARMAN International (“HARMAN”), a wholly-owned subsidiary of Samsung Electronics Co., Ltd., for an aggregate purchase price of $350 million in cash, subject to certain adjustments”.
Last year, Harman maintained its top position in portable audio with a market share of 60%. It now wants to solidify its global number 1 position in the consumer audio market, which could increase from $60.8 billion in 2025 to $70 billion by 2029. This acquisition will help HARMAN to grow its audio business by expanding products into key areas such as Home Audio, Headphones, Hi-Fi components, and Car Audio.
