Masimo: 2022 Outlook; to Acquire Sound United

 2022 Financial Guidance

The Company provided the following estimates for its full-year 2022 guidance:

		2022 Guidance(1)
(in millions, except percentages and earnings per share)		GAAP				Non-GAAP
Product revenue		$	1,350.0			$	1,350.0
Percentage growth - as reported			8.9	%			N/A
Percentage growth - constant currency			N/A				9.5	%
Gross margin			66.2	%			66.5	%
Operating margin			23.0	%			24.8	%
Earnings per diluted share		$	4.27			$	4.34
Estimated tax rate			19.4	%			24.0	%
______________ (1) Consistent with prior guidance provided on January 11, 2022.

• Product revenue increasing to $1,350.0 million, which reflects reported growth of 8.9% and constant currency growth of 9.5%;

• GAAP earnings per diluted share increasing to $4.27;

• Non-GAAP earnings per diluted share increasing to $4.34; and

• Included in our full-year 2022 revenue guidance is approximately $7.0 million of year-over-year currency headwinds.

Sound United Transaction

The Company has entered into a definitive merger agreement to acquire Viper Holdings Corporation, which owns Sound United ("Sound United"), a consumer technology company that owns a portfolio of premium brands, including Bowers & Wilkins, Denon, Polk Audio and Marantz. Pursuant to the merger agreement, Masimo will pay approximately $1.025 billion, subject to adjustments, for the acquisition. Masimo intends to finance the acquisition through a combination of cash on hand and borrowings under a new credit facility, and expects the transaction to close in the middle of 2022, subject to customary closing conditions. The transaction is expected to be immediately accretive to Masimo’s non-GAAP earnings per share upon closing. Please refer to the "Masimo Q4 2021 Supplemental Presentation to the Earnings Press Release" for more information about the transaction.

Joe Kiani, Chairman and Chief Executive Officer of Masimo, said "Sound United is a company with a premium consumer technology platform and iconic, universally-recognized brands like Bowers and Wilkins, Denon, Polk Audio and Marantz, as well as an integrated wireless software platform, HEOS, connecting devices and networks in the home. The Sound United transaction aligns with Masimo’s priorities, objectives and vision by advancing our strategy of enabling connected monitoring across both the hospital and home. We see significant opportunities to cross-leverage technologies, bringing Masimo’s clinically superior solutions into the home and on-the-go as well as bringing Sound United’s premium technologies into the hospital to advance our hospital automation connectivity and cloud-based technologies. The technology and expertise within Sound United will serve us well as we aim to augment our Masimo SafetyNet strategy. Their well-established reputation and presence in the home can help us accelerate adoption of our wearables, and integrated, home-based telemedicine solutions."

Following completion of the transaction, the current CEO and President of Sound United, Kevin Duffy, and his leadership team are expected to continue to lead the Sound United business under Masimo, as well as support Masimo’s consumer health business.

Citi is serving as the exclusive financial advisor to Masimo and Paul Hastings LLP is serving as legal counsel.

https://finance.yahoo.com/news/masimo-reports-fourth-quarter-full-210500008.html