Investing.com -- Masimo (NASDAQ:MASI) said Friday that it was weighing up whether to spin off its consumer business as the company looks to bolster growth in its healthcare business.
Masimo was up more than 11% in afterhours trading following the news.
The potential separation of its consumer business includes its consumer audio and consumer health products as well as the Stork baby monitor and the Freedom smart watch and band, the company said.
Masimo would retain its professional healthcare and telehealth products units following the spinoff in a move that is expected to improve the profit in tis healthcare business.
Joe Kiani is expected to remain Chairman and CEO of Masimo and to be named chairman of the newly created company, Masimo said. "I proposed a separation of the consumer business in January and the Board has agreed to move forward," Kiani said.
The company also reaffirmed its guidance for Q1 and the full year.