Acquisitions	9 Months Ended
Sep. 29, 2012
Acquisitions	4. Acquisitions *Spire Semiconductor* On March 9, 2012, the Company acquired substantially all of the assets and certain liabilities of Spire Semiconductor, LLC, or Spire, a maker of advanced light emitting diode and other advanced component-level technologies. Masimo Semiconductor, Inc., or Masimo Semiconductor, a recently formed, wholly-owned subsidiary of Masimo Corporation, will operate the business going forward. The acquisition gives Masimo an advanced ability to develop custom components, accelerate development cycles, and optimize future product costs. Masimo Semiconductor, based in New Hampshire, will specialize in wafer epitaxy, foundry services, and device fabrication for biomedical, telecommunications, consumer products and other markets. Under the acquisition agreement, Masimo agreed to pay $8.0 million and assume $0.5 million of Spire’s liabilities, subject to adjustments contained in the agreement. Simultaneous with this asset acquisition, the Company entered into a lease agreement with a related party to Spire Corporation, to lease manufacturing and office space in New Hampshire through March 2017. All the assets and liabilities acquired from Spire as of March 9, 2012, and Masimo Semiconductor’s operating results from March 10, 2012 through September 29, 2012 are included in these condensed consolidated financial statements. Pro forma results of operations for this acquisition have not been presented because the effect of this acquisition was not material to the Company’s financial condition or results of operations. *Phasein* On July 27, 2012, the Company acquired Phasein, a developer and manufacturer of ultra-compact mainstream and sidestream capnography, multigas analyzers and handheld capnometry solutions. The acquisition of Phasein’s multigas technologies complements the Company’s breakthrough innovations for patient monitoring with a portfolio of products ranging from OEM solutions for external “plug-in-and-measure” gas analyzers and integrated modules to handheld devices. With multiple measurements delivered through either mainstream or sidestream options, the Company’s customers can now benefit from CO₂, N₂O, O₂, and anesthetic agent monitoring in many hospital environments, such as operating rooms, procedural sedations and intensive care units. The Company paid $30.5 million for all outstanding shares of Phasein. The final purchase price allocation resulted in $16.1 million assigned to goodwill, $12.6 million assigned to intangible assets, $1.4 million assigned to inventory, $2.4 million assigned to various other assets and $2.0 million assigned to various liabilities. The Company funded the acquisition entirely with existing cash and cash equivalents. Phasein’s assets acquired and liabilities assumed, as well as its results of operations since the acquisition date, are included in these condensed consolidated financial statements as of September 29, 2012. Pro forma financial information for this acquisition has not been presented because the effect of this acquisition was not material to the Company’s consolidated financial statements.

Acquisitions

9 Months Ended

Sep. 29, 2012

4. Acquisitions

Spire Semiconductor

On March 9, 2012, the Company acquired substantially all of the assets and certain liabilities of Spire Semiconductor, LLC, or Spire, a maker of advanced light emitting diode and other advanced component-level technologies. Masimo Semiconductor, Inc., or Masimo Semiconductor, a recently formed, wholly-owned subsidiary of Masimo Corporation, will operate the business going forward. The acquisition gives Masimo an advanced ability to develop custom components, accelerate development cycles, and optimize future product costs. Masimo Semiconductor, based in New Hampshire, will specialize in wafer epitaxy, foundry services, and device fabrication for biomedical, telecommunications, consumer products and other markets.

Under the acquisition agreement, Masimo agreed to pay $8.0 million and assume $0.5 million of Spire’s liabilities, subject to adjustments contained in the agreement. Simultaneous with this asset acquisition, the Company entered into a lease agreement with a related party to Spire Corporation, to lease manufacturing and office space in New Hampshire through March 2017.

All the assets and liabilities acquired from Spire as of March 9, 2012, and Masimo Semiconductor’s operating results from March 10, 2012 through September 29, 2012 are included in these condensed consolidated financial statements. Pro forma results of operations for this acquisition have not been presented because the effect of this acquisition was not material to the Company’s financial condition or results of operations.

Phasein

On July 27, 2012, the Company acquired Phasein, a developer and manufacturer of ultra-compact mainstream and sidestream capnography, multigas analyzers and handheld capnometry solutions. The acquisition of Phasein’s multigas technologies complements the Company’s breakthrough innovations for patient monitoring with a portfolio of products ranging from OEM solutions for external “plug-in-and-measure” gas analyzers and integrated modules to handheld devices. With multiple measurements delivered through either mainstream or sidestream options, the Company’s customers can now benefit from CO₂, N₂O, O₂, and anesthetic agent monitoring in many hospital environments, such as operating rooms, procedural sedations and intensive care units.

The Company paid $30.5 million for all outstanding shares of Phasein. The final purchase price allocation resulted in $16.1 million assigned to goodwill, $12.6 million assigned to intangible assets, $1.4 million assigned to inventory, $2.4 million assigned to various other assets and $2.0 million assigned to various liabilities. The Company funded the acquisition entirely with existing cash and cash equivalents. Phasein’s assets acquired and liabilities assumed, as well as its results of operations since the acquisition date, are included in these condensed consolidated financial statements as of September 29, 2012. Pro forma financial information for this acquisition has not been presented because the effect of this acquisition was not material to the Company’s consolidated financial statements.