Danaher
(NYSE: DHR)
announced that it agreed to acquire Masimo
(Nasdaq: MASI)
in a deal worth approximately $9.9 billion.
The Financial Times first reported that the companies were close to a deal on Monday, Feb. 16. Both companies confirmed an agreement today. The deal’s value marks a nearly $3 billion premium to Masimo’s closing value last Friday, Feb. 13.
Shares of MASI soared more than 34% to $174.59 apiece in pre-market hours today. DHR shares were down 7% at $197.85 apiece before the market opened.
Washington, D.C.–based Danaher operates across life sciences spaces, with a range of businesses spanning laboratory equipment, diagnostics, biotechnology and more.
An acquisition of Irvine, California-based Masimo would add significant digital health and patient monitoring capabilities to Danaher’s portfolio. Masimo’s technologies include pulse oximeters and healthcare monitoring systems, like the wearable W1 smartwatch.
Under the terms of the deal, Danaher is set to acquire all outstanding Masimo shares for $180 per share in cash. The company plans to fund the acquisition with cash on hand and proceeds from debt financing. It expects to close the transaction in the second half of 2026. The deal remains subject to applicable regulatory clearances and Masimo shareholder approval.
Danaher expects Masimo to operate as a standalone company within its Diagnostics segment upon completion of the deal. It expects an accretive impact to adjusted EPS (15¢-20¢) in the first full year, then an approximately 70¢ impact by the fifth full year.
Commentary from Danaher and Masimo officials
Rainer M. Blair, president and CEO, Danaher, said:
“We are excited to welcome the Masimo team to Danaher. We’ve followed this innovative company for many years and see it as an exceptional strategic fit for Danaher. Masimo is a leader in pulse oximetry and other patient monitoring solutions, which combined with its trusted brand and differentiated technology, will greatly strengthen our diagnostics franchise. With the Danaher Business System and our global scale, we see opportunities to expand Masimo’s reach and continue improving outcomes for patients, particularly those in acute care settings.”
Julie Sawyer Montgomery, EVP for Diagnostics, Danaher, said:
“Masimo’s advanced sensor technology and AI-enabled monitoring bring powerful new capabilities to our diagnostics portfolio. Integrating these strengths into Danaher will create meaningful opportunities to innovate for clinicians and improve decision making in critical settings.”
Katie Szyman, CEO of Masimo, said:
“We look forward to joining Danaher and continuing our growth and momentum as the global leader in patient monitoring. Danaher shares our commitment to investing in talent and innovation and will be an ideal fit to help power the next chapter of Masimo. Importantly, becoming part of Danaher’s Diagnostics segment will strengthen our ability to scale our monitoring technologies globally and accelerate our mission of delivering Masimo innovations that empower clinicians to transform patient care.”
Michelle Brennan, chair of Masimo’s board of directors, said:
“This transaction represents a unique opportunity to deliver certain and premium value for Masimo’s shareholders, enhance outcomes for customers and patients, and provide compelling career growth paths for our employees across the world. The Board evaluated a broad range of opportunities over the past several months – which included pursuing our standalone strategy – and engaged with multiple other potential partners. Ultimately, it became evident that this transaction with Danaher was the most value-enhancing path for Masimo and all its stakeholders.”
What brought Masimo here
A major acquisition could mark the latest twist for Masimo after a topsy-turvy couple of years.
In 2024, Founder and CEO Joe Kiani resigned after a September shareholder vote that ousted him from the position of board chair following a lengthy proxy battle between Masimo and Politan Capital Management. The company also enacted layoffs at its headquarters at the end of 2024.
Masimo opened 2025 by appointing Szyman, a longtime Edwards Critical Care leader, as its new CEO.
Under Szyman, the company moved forward with a deal to sell its consumer audio business and center its focus on healthcare technologies. It completed the $350 million deal in September 2025, closing the chapter that began with a $1 billion acquisition of Sound United in 2022.
Meanwhile, the company continues to engage in a long-running legal battle with tech giant Apple. Most recently, the company logged its opposition to Apple’s appeal to throw out a $634 million award to Masimo after a federal jury found that Apple had infringed on the company’s pulse oximetry patents.
(Szyman spoke about leadership in medtech at AdvaMed’s The MedTech Conference last fall. Read about it here.)
The analysts’ take
BTIG analysts Marie Thibault, Sam Eiber and Alexandra Pang rate Masimo as a “Buy” and offered their early thoughts on the rumored deal.
The analysts say that, with Masimo shares sinking around 30% over the past year and its “market leadership in the patient monitoring duopoly,” interest in an acquisition comes as no surprise.
Additionally, they note that Danaher has varied interests across health sectors and has undertaken hundreds of acquisitions in the last 40 years.
The analysts expect Danaher to have the ability to fund the deal with a mix of cash and debt. They note that Danaher purchased Radiometer Medical more than two decades ago. That deal included monitoring systems covering the same parameters covered by Masimo technology.
Masimo’s website states that Radiometer incorporates Masimo SET technology into some of its monitors, the analysts said. Additionally, Radiometer acquired HermoCue in 2013, adding point-of-care hemoglobin and glucose testing.
“Such a potential deal by DHR may be an effort to deepen its presence in patient monitoring,” the analysts say.
The analysts say Masimo’s position in the patient monitoring market means “there could be potential for other interested players to assess an acquisition of the company.” It currently competes with Medtronic’s Patient Monitoring and Respiratory Interventions business, which had previously been the subject of acquisition interest. As a result, the analysts say it makes sense “similar players” to register interest in Masimo.
