Danaher to Acquire Masimo for $9.9B
Device and diagnostics giant Danaher has agreed to acquire patient monitoring company Masimo for $9.9 billion. The deal is aimed at significantly boosting Danaher's diagnostics portfolio and expanding its presence in the monitoring and sensor technology market.
- The acquisition is valued at $180 per share, which represented a 43% premium over Masimo's market capitalization the day before the announcement. This move follows a period of significant pressure on Masimo from activist investor Politan Capital Management, which led to the ouster of founder Joe Kiani as board chair. - Danaher will integrate Masimo as a standalone operating company within its Diagnostics segment, which in 2025 accounted for $9.94 billion of Danaher's $24.57 billion in total revenue. This places Masimo alongside other Danaher companies like Cepheid, Beckman Coulter Diagnostics, and Radiometer, complementing their invasive blood analyzers with Masimo's non-invasive technologies. - Masimo holds a significant position in the global patient monitoring market, which was valued at $48.5 billion in 2024. Specifically, it commanded a 23.1% share of the U.S. pulse oximetry systems market in 2025, a market expected to reach $2.1 billion by 2034. - A key asset included in the deal is Masimo's Signal Extraction Technology (SET), a leading platform for noninvasive patient monitoring. Danaher's strategy appears to reframe continuous monitoring as a form of "living diagnostics," integrating real-time physiological data as a core diagnostic pillar. - The transaction comes after Masimo divested its Sound United consumer audio business for $350 million, a significant markdown from its $1 billion purchase price. This sale was seen as refocusing Masimo on its core healthcare business, making it a more attractive "pure-play" medtech target for acquirers. - Danaher projects that with the application of its Danaher Business System (DBS), it can achieve over $125 million in annual cost synergies and $50 million in revenue synergies by the fifth year. The company expects the acquisition to boost adjusted earnings per share by $0.15 to $0.20 in the first full year. - The deal also transfers Masimo's ongoing patent litigation against Apple to Danaher. In late 2025, a federal jury awarded Masimo $634 million in damages, finding that Apple had infringed on its pulse oximetry patents with the Apple Watch.
