Masimo Corp shareholders elected both director candidates proposed by veteran activist investor Quentin Koffey's hedge fund Politan Capital Management, in one of the most contentious boardroom battles of the year.

Masimo Corp. won’t continue to oppose Politan Capital Management LP’s nomination of two candidates to its board of directors who, if elected, would shift control of the company to the hedge fund.

Masimo (NASDAQ:MASI) rose 3% after activist investor Politan Capital Management won two board seats after a bitter proxy battle with the medical device maker. Politan nominees  Darlene Solomon and William Jellison were elected to the board at a holder vote on Thursday,