A little more information:
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,
And from the 4th Q Earnings Call:
[Lots of interesting things cut, including SU having 14% EBIDTA, but this seemed interesting]
Operator
Thank you very much, Mr. Kiani. [Operator Instructions] With that, we’ll take our first question this afternoon from Matt Taylor with UBS.
Matt Taylor
Good afternoon. Thanks for taking the question. So I’d love to hear more about the opportunity here for Masimo with the acquisition. Maybe you could give us a sense for some of your vision about how you’ll integrate Masimo technology with these brands and how quickly that could evolve to take more of your hospital technology into the home.
Joe Kiani
Sure. Thank you. I’m going to give you, I think, a fraction of what we’re planning because of competitive reasons. But I think you’ll see even the fraction of what we’re discussing is going to be significant.
First of all, I want to tell you, since I was a kid, I’ve been an enthusiast of audio file equipment and the engineering that is done to create these incredible products that can not only replicate recorded music, but do it in a way without distortion with incredible fidelity. And the companies that are part of Sound United are the best of the best. And what a fantastic thing, and we’re going to hopefully do things to help them become even better, even though Denon is a 100-year brand, marantz a 50-year brand and so forth, Bowers & Wilkins and Polk an English and a U.S. company with the first two Japanese companies that have just done a remarkable job.
But they’ve got things like HEOS, which we really like in the connectivity side. We also see their incredible team and the way they develop the channels in the past 15 years, led by Kevin Duffy as a big relief maybe and an opportunity that we see for the launch of W1 and other products that are coming. We have expanded significant resources for many years to get to this place from a technological perspective. And we believe this team will help us maximize the potential for W1 and other products that are going to follow.
Secondly, maybe as I’m getting older, my hearing is getting worse, but there’s an opportunity with the Air Buds and the new regulations in the United States regarding hearing aids to really do some cool things in both listening to music and having communication to improving the hearing and experiences of many, many people. And we see that as another large opportunity that we will now better be able to serve. These are projects we’ve been working on internally. But now with Sound United, we can hopefully accelerate them and reach a broader audience more rapidly.