Danaher Corporation has entered into a definitive agreement to acquire Masimo Corporation for approximately $9.9 billion in cash, valuing Masimo at $180 per share. The agreement, dated February 16 2026, is expected to close in the second half of 2026.
The acquisition is designed to bolster Danaher’s Diagnostics segment by adding Masimo’s non‑invasive patient‑monitoring technologies, including pulse oximetry and AI‑enabled monitoring. Julie Sawyer Montgomery, Executive Vice President for Diagnostics, 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."
Financially, the deal is projected to be accretive to Danaher’s adjusted diluted earnings per share, with an estimated $0.15 to $0.20 increase in the first full year after closing and about $0.70 by the fifth year. Danaher anticipates realizing over $125 million in annual cost synergies and over $50 million in annual revenue synergies by the fifth full year post‑acquisition. Masimo is expected to generate more than $530 million in EBITDA in 2027 under Danaher ownership.
Masimo’s recent performance underscores the value of the transaction. In Q3 2025, Masimo reported GAAP revenue of $371.5 million, up 8.2% year‑over‑year, and non‑GAAP net income per diluted share of $1.32, a 38% increase from the prior year. Danaher’s Q3 2025 results showed revenues of $6.1 billion, a 4.5% year‑over‑year increase, and non‑GAAP adjusted diluted net earnings per common share of $1.89. In Q4 2025, Danaher reported revenues of $6.8 billion, also up 4.5% year‑over‑year, and non‑GAAP adjusted diluted net earnings per common share of $2.23.
Management emphasized the strategic fit and confidence in the combined entity. Rainer M. Blair, President and Chief Executive Officer of 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." Blair also noted, "We delivered a strong finish to the year with better‑than‑expected performance across our portfolio. We were particularly encouraged by a continued strength in our bioprocessing business, along with improved momentum in Diagnostics and Life Sciences. Our teams' disciplined execution also enabled us to exceed our fourth quarter margin, earnings, and cash flow expectations." Looking ahead, Blair added, "We expect the gradual improvement in our end markets we saw through 2025 to continue, and we believe the combination of our differentiated portfolio, the power of the Danaher Business System, and the strength of our balance sheet positions Danaher for long‑term value creation as we move into 2026 and beyond."
Investors reacted to the premium offered to Masimo and to Danaher’s large cash outlay and recent revenue miss. The premium—$180 per share, roughly 38% above the prior Friday’s closing price—was a key driver of the market’s response to Masimo, while Danaher’s cash commitment and a slight revenue miss in its Q4 2025 earnings report influenced investor sentiment toward the acquisition.
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