The company anticipates that its consumer audio and consumer health products like the Stork baby monitor and the Freedom smart watch and band will be included in the separation
Masimo Stork Baby Monitoring System. (Credit: Business Wire)
Masimo has secured approval from its board of directors to proceed with the evaluation of a proposed separation of its consumer division.
Based in California, Masimo is a medical technology company listed on Nasdaq. It develops and produces monitoring technologies such as measurements, sensors, patient monitors, and automation and connectivity products.
Masimo anticipates that its consumer audio and consumer health products like the Stork baby monitor and the Freedom smart watch and band will be included in the separation.
The medical technology company will continue offering its telehealth and professional healthcare products. According to Masimo, the move will increase the profitability of the company’s healthcare arm.
The company expects its incumbent chairman and CEO Joe Kiani to continue in the same roles in addition to becoming the chairman of the separated business.
Masimo is aiming to conclude the separation as soon as feasible.
The consumer division’s separation is subject to the conclusion of the due diligence process, the signing of definitive agreements, the filings’ submission and approval by the US Securities and Exchange Commission, and the receipt of other necessary regulatory approvals.
Kiani said: “I truly believe there is tremendous opportunity to increase not just the lifespan but the healthspan of people by taking healthcare into the home.
“We have unique and necessary technologies to make what I’ve been calling 22nd Century healthcare happen in the next few years. I proposed a separation of the consumer business in January and the Board has agreed to move forward.
“This approach is expected to maximise shareholder value as well as give both Masimo healthcare and the new consumer business the best path for success.”
Last month, the American firm received the US Food and Drug Administration (FDA) clearance for the MightySat Medical fingertip pulse oximeter.