The Masimo logo will be displayed at Masimo's headquarters in Irvine, California on December 27, 2023.
Tama Mario | Getty Images
Medical technology company Masimo Corp. said Friday it is considering a spinoff of its consumer businesses, which include consumer health and audio products, sending its stock up 13% in after-hours trading.
The company, which makes devices such as pulse oximeters, also sells baby monitors and smart watches under its own brand.
Masimo's $1 billion acquisition of audio product maker Sound United LLC in 2022 was poorly received by investors, with the stock plummeting 37% and wiping out about $5 billion in market capitalization.
Following the acquisition, Quentin Coffey's Politan Capital Management acquired a 9% stake in Masimo with plans to drive change at the company.
Masimo will maintain its healthcare and telemedicine products, it said, adding that the spin-off will improve the profitability of its healthcare business.
Current CEO Joe Chiani will remain as chief executive officer, but will also take on a new role as chairman of the new company, Masimo said.
Massimo said he plans to complete the separation “as soon as possible.”
Irvine, Calif.-based Masimo has been in the headlines since October, when the iPhone maker sued Apple for stealing trade secrets related to technology that reads blood oxygen levels in watches and infringing Masimo's patents. ing.
