Danaher to Acquire Masimo for $10B: Expanding Diagnostics Portfolio

In a significant move signaling consolidation within the medical technology sector, Danaher Corporation has announced its acquisition of Masimo Corporation for $9.9 billion. The deal, valued at $180 per share, aims to bolster Danaher’s diagnostics portfolio with Masimo’s leading non-invasive patient monitoring technologies, particularly its widely recognized pulse oximetry devices. This acquisition underscores a growing trend of large life sciences companies seeking to expand their reach and capabilities in the rapidly evolving field of patient care and diagnostics.

Masimo, headquartered in Irvine, California, has established itself as a key innovator in patient monitoring, developing sensors that non-invasively measure critical vital signs like blood oxygen levels. These technologies are crucial in acute care settings, providing real-time data that informs clinical decision-making. For Danaher, a global science and technology innovator, integrating Masimo’s expertise represents a strategic expansion beyond its traditional strengths in drug development tools and into the more stable and growing acute care market. The transaction is expected to close in the second half of 2026, pending regulatory approvals.

The acquisition comes at a pivotal moment for both companies. Masimo recently transitioned to a “pure-play” med-tech firm after selling its Sound United unit, which included audio brands Denon and Marantz, to Samsung’s Harman for $350 million in 2025. This strategic move allowed Masimo to focus exclusively on its core medical technologies. Simultaneously, Masimo has been navigating a complex legal battle with Apple over patent infringement related to blood-oxygen reading technology, ultimately winning a $634 million judgment against Apple in November 2025. Danaher, meanwhile, has been actively expanding its diagnostics capabilities, with its largest previous acquisition being the $5.7 billion purchase of protein consumables maker Abcam in 2023.

Danaher’s Strategic Expansion into Patient Monitoring

Danaher’s decision to acquire Masimo is driven by a desire to strengthen its diagnostics franchise and capitalize on the growing demand for advanced patient monitoring solutions. According to a statement released by Julie Sawyer Montgomery, Executive Vice President for Diagnostics at Danaher, “Masimo’s advanced sensor technology and AI-enabled monitoring bring powerful modern 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.” The deal will see Masimo operate as a standalone operating company within Danaher’s Diagnostics segment, alongside established brands like Radiometer, Leica Biosystems, Cepheid, and Beckman Coulter Diagnostics.

This integration is expected to create synergies by combining Masimo’s non-invasive monitoring technologies with Danaher’s invasive blood analyzer devices, such as those offered by Radiometer. This complementary approach could lead to more comprehensive and integrated diagnostic solutions for healthcare providers. The transaction multiple is approximately 18x estimated 2027 EBITDA, or 15x 2027 estimated EBITDA including the full benefit of expected annual synergies, as outlined in a press release from Danaher. Danaher anticipates that Masimo will contribute $0.15 to $0.20 to adjusted diluted net earnings per common share in the first full year following the acquisition, increasing to approximately $0.70 in the fifth year.

Masimo’s Transition and Future Outlook

The acquisition marks a new chapter for Masimo, following a period of internal change. In 2024, Joe Kiani, the company’s founder and former CEO, stepped down after a proxy battle with activist investor Politan Capital Management. Katie Szyman, a former executive with Medtronic and BD, assumed the role of CEO. Szyman expressed optimism about the acquisition, stating, “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.”

Analysts suggest the deal provides Masimo with greater global scale and commercial reach, potentially accelerating the adoption of its monitoring tools. Michael Abrams, managing partner of Numerof & Associates, noted that the acquisition reinforces Masimo’s position as a focused medtech company, particularly after resolving its patent disputes and shedding its consumer audio business. The resolution of the patent dispute with Apple, which resulted in a $634 million award to Masimo, was a significant step in streamlining the company’s focus on its core medical technologies. The company’s market capitalization is approximately $7 billion, whereas Danaher is valued at over $150 billion, highlighting the scale of the acquisition.

Industry Trends and Consolidation

The Danaher-Masimo deal is indicative of a broader trend toward consolidation within the medical technology industry. Larger companies are increasingly seeking to acquire innovative firms to expand their product offerings, enhance their technological capabilities, and achieve economies of scale. This trend is driven by factors such as increasing regulatory scrutiny, the need for greater investment in research and development, and the growing demand for integrated healthcare solutions. As Abrams pointed out, “Increasing value is placed on non‑invasive monitoring technologies that integrate into hospital workflows and diagnostics ecosystems — areas forecasted for continued growth.”

This consolidation also reflects a defensive strategy for companies like Danaher, diversifying beyond traditional areas like drug development tools into the more stable and steadily growing acute care market. The acquisition of Masimo provides Danaher with access to profitable devices and sensors, allowing the company to play a more significant role in ongoing patient care and expand its presence in hospital technology. The deal aligns with a broader industry strategy of vertical integration across the care continuum, encompassing diagnostics, monitoring, and analytics.

Financial Details and Regulatory Approvals

The total consideration for the acquisition is $9.9 billion, with Danaher paying $180 per share in cash for Masimo. This represents a premium of 38.3% to Masimo’s last closing price before the announcement. The transaction is subject to customary closing conditions, including regulatory approvals. Both companies anticipate the deal will close by the second half of 2026. The acquisition will be financed through a combination of cash on hand and debt. Danaher’s strong financial position allows it to pursue this significant acquisition without jeopardizing its existing financial commitments.

The completion of the deal will require approval from regulatory bodies in various jurisdictions, including the United States and potentially international markets. The review process will likely focus on ensuring that the acquisition does not create anti-competitive conditions within the patient monitoring and diagnostics markets. Both Danaher and Masimo have expressed confidence in their ability to secure the necessary approvals in a timely manner.

Key Takeaways:

• Danaher is acquiring Masimo for $9.9 billion to strengthen its diagnostics portfolio.
• The deal will integrate Masimo’s non-invasive monitoring technologies with Danaher’s existing diagnostics businesses.
• Masimo has recently undergone internal changes, including a change in CEO and the sale of its consumer audio division.
• The acquisition reflects a broader trend of consolidation within the medical technology industry.
• The deal is expected to close in the second half of 2026, pending regulatory approvals.

The next key milestone will be the receipt of regulatory approvals from relevant authorities. Investors and industry observers will be closely monitoring the progress of the acquisition and its potential impact on the competitive landscape of the patient monitoring and diagnostics markets. We encourage readers to share their thoughts on this significant development in the comments below.