Masimo plans to split off consumer tech division By Investing.com – Investing.com

IRVINE, Calif. - Masimo (NASDAQ:) Corporation (NASDAQ:MASI), known for its noninvasive monitoring technologies, is considering a strategic move to separate its consumer business from its core healthcare operations.

The decision, authorized by the company's Board of Directors, is aimed at enhancing the focus and profitability of its healthcare products while establishing a new entity for consumer audio and health products.

The proposed separation would see Masimo's consumer-oriented products, such as the Stork baby monitor and the Freedom smart watch and band, transition to a newly formed company. Meanwhile, Masimo would continue to concentrate on its professional healthcare and telehealth solutions.

Joe Kiani, the current Chairman and CEO of Masimo, is expected to lead both the existing and the new company once the separation is complete.

The move comes as part of Masimo's broader strategy to optimize shareholder value and provide a clearer path for growth for both segments of its business. The company is currently working through the due diligence process and aims to finalize the separation promptly, pending regulatory approvals and the completion of definitive agreements.

Masimo has also reiterated its financial guidance for the first quarter and the full fiscal year of 2024, signaling confidence in its current business trajectory.

Masimo's reputation in the field of medical technology is underpinned by its extensive product portfolio, which includes advanced patient monitoring systems, sensors, and connectivity solutions. The company's innovative pulse oximetry technology, Masimo SET, has been recognized in over 100 independent studies for its superior performance.

The planned separation is subject to various conditions, including regulatory review and the approval of filings with the Securities and Exchange Commission. As the process unfolds, Masimo is committed to ensuring minimal disruption to its operations and maintaining its focus on delivering high-quality healthcare solutions.

This announcement is based on a press release statement from Masimo Corporation.

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Masimo plans to split off consumer tech division By Investing.com - Investing.com