Announcing the acquisition of Sound United, Masimo Corporation (MASI) stock declined in the current market. MASI is currently trading at $151.50, losing more than 34% compared to its previous closing price. The stock finished at $228.84 at the end of the latest trading day. The previous trading session saw about 443.85K shares of stock exchanged. The current market cap of the company is about $8.48 billion.
MASI announced the Acquisition of Sound United
Masimo Corporation (MASI) bought Sound United, LLC. Masimo is a global leader in noninvasive hospital and home monitoring.
Together, Masimo and Sound United will improve user experience and develop superior items. For his increasing consumer product line, Masimo will use Sound United’s knowledge. They will have a world-class professional, and consumer engineering function focused on products that improve their customers’ lives.
Agreement details
Under normal circumstances, the company expects that the acquisition will complete by the middle of 2022, pending regulatory clearances and other closing conditions. Sound United’s CEO, Kevin Duffy, will continue to report directly to Masimo Chairman and CEO Joe Kiani when the deal closes.
A portfolio business of Charlesbank Capital Partners, LLC, a private equity firm in Boston, is Sound United. Neither Citigroup nor Paul Hastings LLP provided legal advice to Masimo. Sound United’s primary financial adviser was Evercore. Sound United also received financial assistance from Stifel and Solomon Partners and legal help from Goodwin Procter LLP.
Conclusion
The company’s stock is down despite the major deal they entered today. It might be due to the sudden demand of the stock and its excessive trading in the market. In such conditions, the stock will regain its value in the upcoming days. The deal represents the strong balance sheet of the company and its goal of extending its business.
