Danaher Corporation has agreed to acquire Masimo Corporation for $180 per share in cash, valuing the transaction at approximately $9.9 billion. The deal will make Masimo a standalone operating company within Danaher’s Diagnostics segment and is expected to close in the second half of 2026.
The acquisition represents a substantial premium to Masimo’s market capitalization and is positioned to be accretive to Danaher’s earnings in the first full year after completion, with an estimated $0.15 to $0.20 per share in adjusted diluted earnings per share. By the fifth full year, the transaction is projected to contribute about $0.70 per share in earnings. Danaher anticipates that Masimo will generate more than $530 million in EBITDA in 2027 and will deliver high‑single‑digit core revenue growth to the Diagnostics segment.
Synergies from the combination are expected to exceed $125 million in annual cost synergies and $50 million in annual revenue synergies by the fifth full year. The deal also includes a $305 million termination fee that Masimo could owe Danaher under certain circumstances. Masimo’s proprietary Signal Extraction Technology (SET) pulse‑oximetry platform, which holds a 23.1% share of the U.S. pulse‑oximetry systems market in 2025, is a key driver of the transaction and will strengthen Danaher’s patient‑monitoring portfolio, particularly in telehealth and acute care settings.
Danaher’s 2025 results provide context for the acquisition. In Q4 2025, Danaher reported adjusted diluted net earnings per common share of $2.23 versus an estimate of $2.17, and revenue of $6.8 billion versus an estimate of $6.87 billion. For the full year, Danaher posted net earnings of $3.6 billion on revenue of $24.6 billion, and it expects core revenue growth of 3% to 6% in 2026. Masimo’s Q4 2025 revenue is expected to be about $411 million, exceeding analyst expectations.
Management emphasized the strategic fit of the transaction. "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," said Rainer M. Blair, President and Chief Executive Officer of Danaher. "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," added Julie Sawyer Montgomery, Executive Vice President for Diagnostics. Masimo CEO Katie Szyman noted, "Ultimately, it became evident that this transaction with Danaher was the most value‑enhancing path for Masimo and all its stakeholders."
The announcement was met with a strong market reaction, driven by the substantial premium and the strategic fit of Masimo’s SET technology within Danaher’s diagnostics portfolio. The deal is subject to customary closing conditions, including regulatory approvals and Masimo shareholder approval, and is supported by a voting agreement with Politan Capital Management.
The acquisition is expected to accelerate growth of Danaher’s Diagnostics segment, enhance its patient‑monitoring capabilities, and create opportunities for further innovation in critical care and telehealth markets.
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