You are right, thanks for the correction.
From investors.com:
"Finally, there's a huge difference in valuation between the buyer and seller, he said. Masimo's market cap was roughly $12.6 billion early Wednesday. It's spending $1.025 billion to acquire Sound United. In 2021, Masimo generated $1.24 billion in sales. Sound United brought in $900 million."
SU recorded $900M revenue in 2021
"The deal marries medical technology player*Masimo*(MASI) and privately held Sound United, a manufacturer of consumer audio devices like earphones and speakers. Masimo argued the $1.025 billion buyout gives it access to an established distribution channel with major retailers and a potential to cross-sell its products.
But investors and analysts weren't impressed."
"This is the first time we have seen a medtech company move into non-health consumer products with a large acquisition," he said.
Further, the transaction will be dilutive to revenue growth and margins, but accretive to earnings. The company also doesn't expect any cost synergies,..."
|