Samsung Electronics announced Tuesday that its Harman International subsidiary has finalized the acquisition of medical technology company Masimo’s consumer audio business in a deal valued at $350 million. The purchase includes Masimo’s audio brands and technologies that complement Harman’s existing portfolio of premium audio products.
The deal brings Denon, Marantz, and Polk Audio under Harman’s control, significantly expanding the company’s footprint in the high-end audio market. These established brands have loyal customer bases and are known for their quality sound reproduction systems. Industry analysts view this acquisition as a strategic move to strengthen Samsung’s position against competitors like Apple and Sony in the premium audio segment.
“This acquisition represents a perfect alignment with our growth strategy,” said Michael Mauser, CEO of Harman. “By integrating Masimo’s audio innovations with our existing technologies, we’re positioned to deliver exceptional audio experiences across more product categories and price points.”
The audio market has become increasingly competitive as consumers seek higher quality sound experiences for home entertainment systems, personal devices, and automotive applications. According to recent data from Grand View Research, the global premium audio market is expected to reach $41.83 billion by 2027, growing at a compound annual rate of 11%.
For Masimo, the divestiture allows the company to refocus on its core medical technology business. The California-based firm is primarily known for its medical monitoring devices and has been working to streamline operations following some challenging quarters. Joe Kiani, Masimo’s founder and CEO, noted that the sale “enables us to concentrate resources on advancing our healthcare technologies while ensuring our audio innovations continue to thrive under Harman’s stewardship.”
Samsung acquired Harman International in 2017 for approximately $8 billion, marking its largest overseas acquisition. The South Korean tech giant has since leveraged Harman’s expertise in connected car systems and premium audio to enhance its own consumer electronics offerings. This latest acquisition further consolidates Samsung’s position in the audio industry.
The timing of the deal coincides with growing consumer interest in premium home entertainment systems, partly accelerated by pandemic-driven lifestyle changes. Market research firm NPD Group reported that sales of high-end audio equipment surged more than 20% in 2023 compared to pre-pandemic levels, suggesting lasting changes in consumer behavior.
Financial experts from Morgan Stanley indicated that the $350 million price tag represents about 1.8 times the estimated annual revenue of Masimo’s audio division, putting the valuation in line with industry standards for similar acquisitions. The transaction was primarily financed through Harman’s existing cash reserves, according to Samsung’s regulatory filing.
Integration of the acquired brands has already begun, with Harman executives promising a smooth transition for customers and retail partners. The company plans to maintain the distinct brand identities while exploring opportunities for technological cross-pollination between its various audio product lines.
“What makes this acquisition particularly valuable is the complementary nature of the brand portfolios,” explained James Feldman, senior analyst at Bank of America Securities. “Denon and Marantz fill specific market niches where Harman had less presence, creating a more comprehensive audio ecosystem that can address virtually any consumer need.”
Industry observers note that the deal may trigger further consolidation in the premium audio sector, which has seen increased pressure from direct-to-consumer brands and technology companies entering the market. Traditional audio manufacturers have been responding by either partnering with tech firms or seeking acquisition opportunities to maintain competitive advantage.
For consumers, the acquisition could eventually lead to new product offerings that combine Harman’s expertise in wireless and smart speaker technologies with the acoustic engineering heritage of brands like Denon and Marantz. However, company representatives emphasized that existing product roadmaps will be maintained in the near term to ensure continuity for current customers.
