Masimo (NSDQ:MASI) said today that Royal Philips (NYSE:PHG) agreed to pay $300 million to resolve all outstanding legal disputes between the companies, with both inking a multi-year patient monitoring partnership deal.
The dismissal includes a patent infringement and antitrust suit pending in the U.S. District Court for the District of Delaware, Masimo said. In the agreement, both parties agreed “not to sue each other for patent infringement for certain of each other’s products.”
“The settlement agreement further provides that the parties will work together to integrate the company’s technologies into additional Philips products, and to jointly develop certain other products,” Masimo wrote in an SEC filing.
Masimo lifted its fiscal year earnings per share guidance with the deal, up from $2.13 to $2.14.
In addition to solving the disputes, both companies inked a multi-year partnership covering patient monitoring and therapy solutions.
The deal includes joint marketing and sales programs in North America and markets in Asia and Europe for Masimo’s non-invasive sensor tech in conjunction with Philips’ offerings.
“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. I am very satisfied that we have reached an agreement that is beneficial for both companies and that we have ended our legal disputes. Going forward, Philips and Masimo will completely focus on jointly delivering meaningful innovations to our customers, such as the integration of Masimo rainbow technology across our IntelliVue patient monitoring product range,” Philips CEO Frans van Houten said in a press release.
As part of the deal, Philips will integrate Masimo’s SedLine brain function monitoring, O3 regional oximetry and Nomoline capnography tech into certain Philips IntelliVue monitors.
“It’s wonderful to think that Masimo and Philips will be working together for the benefit of patients and clinicians around the world. 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,” Masimo CEO Joe Kiani said in a prepared statement.
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