Masimo Corp. (MASI), in an SEC Form 8-K filing, disclosed that a prospective joint venture partner has submitted a non-binding term sheet, proposing an offer between $850 million and $950 million for its consumer business. This offer is structured on a cash and debt-free basis.
The term sheet details additional terms and conditions related to the potential joint venture, including the proposed valuation and possible strategic partners. The exclusivity period for negotiations may extend until mid-August 2024.
Masimo is actively negotiating the terms of the potential joint venture, with particular focus on intellectual property rights. Notably, the licensing agreement would exclude the healthcare sector. Furthermore, Masimo plans to maintain its ongoing litigation with Apple. As announced on March 22, 2024, the company is still considering separating its consumer business, with the potential option of spinning it off into a new public entity.
