Samsung Electronics acquires premium audio brands from Masimo

Bowers & Wilkins' Nautilus speaker / Captured from Bowers & Wilkins website

Samsung Electronics’ audio subsidiary Harman International will acquire the audio business of U.S.-based Masimo, which operates premium audio brands including Bowers & Wilkins (B&W), marking the Korean company's first high-profile acquisition in nine years.

According to Samsung, Harman has signed a sales and purchase agreement with Masimo to take over the latter’s audio division at 500 billion won ($350 million). Harman plans to complete the acquisition by the end of the year.

Under the deal, Masimo’s audio brands including B&W, Denon, Marantz, Polk Audio and Definitive Technology will join Harman's existing portfolio.

Masimo is an American health technology and consumer electronics company, which acquired the aforementioned brands by taking over Sound United in 2022 for $1 billion.

B&W is a British brand found in 1966, renowned for its distinctive design and sound quality as seen in products such as the Nautilus and Zeppelin speakers. In recent years, it is expanded its consumer base with Px series noise-canceling wireless headphones. Denon is a 115-year-old brand known as the inventor of the world’s first CD player, and Marantz is renowned for its premium amplifiers and high-fidelity receivers.

Banner of Harman International

Samsung Electronics said the acquisition will help Harman further solidify its global leading position in the consumer audio market. The company expects the market to grow from $60.8 billion in 2025 to $70 billion in 2029.

Harman now owns audio brands such as JBL, Harman Kardon, AKG, Infinity and Mark Levinson. The company led the global portable audio market last year with a market share of around 60 percent and has been increasing its presence in larger audio segments such as headphones and wireless earbuds.

“Built on a shared legacy of innovation and excellence in audio technology, this combined family of brands, together with the talented employees of both companies, will deliver complementary audio products, strengthen our value proposition and offer more choices to consumers,” Dave Rogers, president of Harman's lifestyle division, said in a statement.

Shareholders of Samsung Electronics look at Harman International's auto parts displayed at the company's annual shareholders' meeting in Suwon, Gyeonggi Province, March 19. Joint Press Corps

The takeover marks Samsung’s largest since it acquired Harman for $8 billion in 2016.

Samsung has long said it plans to use mergers and acquisitions (M&A) as a growth engine, but it has remained low-key for years, reiterating in recent earnings calls that it is monitoring the market.

Samsung Electronics Chief Financial Officer Park Soon-cheol said during an earnings call for the first quarter of this year on April 30 that the company is “actively reviewing M&A opportunities to enhance shareholder value and drive future growth.”

Taking over Harman was a successful bet for Samsung. The company’s operating profit remained at 57.4 billion won in 2017 but skyrocketed to 1.3 trillion won last year. Samsung has been using audio technologies and AKG and Harman Kardon branding for its smartphones, laptops and other consumer electronics.

Samsung said it plans to apply the advanced audio technologies and expertise of the new brands to its smartphones, wireless earbuds, headphones, TVs and soundbars.

The industry's attention is now on whether Samsung will pursue additional M&A deals in future-oriented businesses such as semiconductors and robotics. During its annual general meeting in March, the company said it is seeking to sign “meaningful M&A deals” in the semiconductor sector.