Philips and Masimo agree $300m deal, end patent disputes
Philips has agreed to make a $300 million cash payment in a multi-year partnership with Masimo, a health technology company.
The partnership includes joint marketing and sales programmes in North America and certain markets in Asia and Europe for Masimo’s non-invasive sensor technologies, in conjunction with Philips’ patient monitoring and select therapy solutions.
As part of the agreement, the companies will end all pending lawsuits between themselves.
This includes Philips being released from paying the $467 million jury verdict that was awarded to Masimo in October 2014 for infringement of two of Masimo’s patents.
The verdict was upheld by a Delaware federal court in May 2015.
In the future, Philips will integrate a number of Masimo’s technologies into its IntelliVue patient monitors.
“This business partnership agreement marks an important day for us and our customers as two leaders in patient monitoring collaborate to develop solutions designed to enhance clinical outcomes and patient safety,” said Frans van Houten, CEO of Philips.
Joe Kiani, chairman and CEO of Masimo, added: “It’s wonderful to think that Masimo and Philips will be working together for the benefit of patients and clinicians around the world.”
He added: “I am delighted that we were able to reach this important agreement, which allows us to focus on the future to deliver the solutions that our customers have been looking for.”
