Masimo Corporation (NASDAQ:MASI) has disclosed ongoing discussions about selling a majority stake in its consumer audio and consumer health businesses.

According to the SEC filing, the company entered into a non-binding term sheet with a potential joint venture partner on May 7, valuing the transaction between $850 million and $950 million.

The term sheet confirmation was provided after six weeks of due diligence, and discussions are still active, covering intellectual property rights and other critical terms.

Meanwhile, Masimo is also considering a potential spin-off into a new public company.