Harman acquires Bowers & Wilkins, Marantz, and Denon, as Masimo offloads its consumer audio division to Harman.
Harman International Expands Audio Portfolio with Acquisition of Masimo's Consumer Audio Division
In a significant move, Samsung-owned Harman International has announced the acquisition of Masimo's consumer audio division, which includes renowned brands like Bowers & Wilkins, Denon, Marantz, Polk Audio, Definitive Technology, and HEOS, among others. The deal, valued at $350 million, is set to reshape the global consumer audio market [1][3][4].
The acquisition adds these respected brands to Harman's existing portfolio, which already includes JBL, Harman Kardon, and AKG. This consolidation strengthens Harman's presence across core product categories such as home audio, headphones, hi-fi components, and car audio, thereby accelerating growth in consumer channels.
Harman's President of the Lifestyle division, Dave Rogers, stated that the acquisition is a strategic step forward in expanding Harman's core audio business [3]. The combined brands are expected to deliver complementary audio products, strengthen their value proposition, and offer more choices to consumers.
Masimo, on the other hand, is refocusing its efforts on its core professional healthcare business. The sale of its consumer audio division aligns with this strategy, allowing Masimo to reallocate resources and potentially return value to shareholders through share repurchases [1][5].
The implications for customers at this early stage are unclear. However, the consolidation of major audio brands under a leading electronics company like Harman likely intensifies competition in high-end and lifestyle audio segments globally, offering greater scale, innovation potential, and market reach for Harman [1][3][4].
It is worth noting that Sound United, the company that Masimo acquired the audio brands from, acquired Bowers & Wilkins in 2020. The acquisition aims to strengthen Samsung's global leading position in the consumer audio market, which is expected to grow from $60.8 billion this year to $70 billion in 2029 [2].
More details about the acquisition, including specific plans and benefits for the combined brands, are yet to be disclosed.
[1] - The Verge [2] - Statista [3] - Variety [4] - Music Business Worldwide [5] - Reuters
- The expanded portfolio of Harman International, following the acquisition of Masimo's consumer audio division, now includes brands like Bowers & Wilkins, Denon, Marantz, Polk Audio, and HEOS.
- The acquisition of these brands by Harman is expected to deliver complementary audio products, strengthening their value proposition and offering more choices to consumers.
- With this deal, Harman International aims to reshape the global consumer audio market, accelerating growth in consumer channels across product categories such as home audio, headphones, hi-fi components, and car audio.
- Masimo, after selling its consumer audio division, will refocus its efforts on its core professional healthcare business, potentially returning value to shareholders through share repurchases.
- The consolidation of major audio brands under Harman International, a leading electronics company, is likely to intensify competition in high-end and lifestyle audio segments globally, offering greater scale, innovation potential, and market reach.
- The $350 million deal between Harman and Masimo is set to grow the consumer audio market, expected to reach $70 billion in 2029.
- In the lifestyle segment, consumers may anticipate new, innovative audio products as a result of the combined resources and expertise of brands like JBL, Harman Kardon, AKG, and now the brands from Masimo's consumer audio division.
- The financial implications for investors in audio brands like Bowers & Wilkins, Denon, Marantz, and Polk Audio might be significant, as the acquisition by Harman promises growth and increased market share.
- As technology continues to evolve, this deal between Harman International and Masimo's consumer audio division emphasizes the importance of strategic partnerships and growth in the global audio market, particularly in areas like smart speakers, headphones, and turntables.
