Masimo plans to spinoff consumer business
March 22 (Reuters) - Medical technology company Masimo Corp said on Friday it is evaluating a proposed spinoff of its consumer business, which includes its consumer health and audio products, sending shares up 13% in extended trading.
The company, which makes equipment such as a pulse oximeter, also sells baby monitors and smart watches under its brand.
Masimo acquired audio products maker Sound United LLC for $1 billion in 2022, which was poorly received by investors who sent shares tumbling 37%, wiping away about $5 billion in market value.
The acquisition was followed by Quentin Koffey's Politan Capital Management taking 9% stake in Masimo with plans to push the company to make changes.
Masimo said it will retain its healthcare and telehealth products, adding the spinoff would improve profitability of the healthcare business.
Current CEO Joe Kiani is expected to remain as chief executive while also taking on a new role as chairman of the newly created company, Masimo said.
Masimo said it expects to complete the separation "as soon as feasible".
Irvine, California-based Masimo has been making the headlines since it sued Apple in October, alleging the iPhone maker stole trade secrets related to technology for reading blood-oxygen levels in its watches and infringed Masimo patents. (Reporting by Mariam Sunny in Bengaluru; Editing by Krishna Chandra Eluri)
