[joel_hifi]

Originally Posted by SCAudiophile

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,..."

"the $1.025 billion buyout gives it access to an established distribution channel with major retailers and a potential to cross-sell its products." -> so that's the bet, thanks for sharing this