March 22 (Reuters) - Medical technology company Masimo

Corp ( MASI ) said on Friday it is evaluating a proposed spinoff

of its consumer business, which includes its consumer health and

audio products, sending shares up 13% in extended trading.

The company, which makes equipment such as a pulse oximeter,

also sells baby monitors and smart watches under its brand.

Masimo ( MASI ) acquired audio products maker Sound United LLC for $1

billion in 2022, which was poorly received by investors who sent

shares tumbling 37%, wiping away about $5 billion in market

value.

The acquisition was followed by Quentin Koffey's Politan

Capital Management taking 9% stake in Masimo ( MASI ) with plans to push

the company to make changes.

Masimo ( MASI ) said it will retain its healthcare and telehealth

products, adding the spinoff would improve profitability of the

healthcare business.

Current CEO Joe Kiani is expected to remain as chief

executive while also taking on a new role as chairman of the

newly created company, Masimo ( MASI ) said.

Masimo ( MASI ) said it expects to complete the separation "as soon

as feasible".

Irvine, California-based Masimo ( MASI ) has been making the

headlines since it sued Apple ( AAPL ) in October, alleging the

iPhone maker stole trade secrets related to technology for

reading blood-oxygen levels in its watches and infringed Masimo ( MASI )

patents.