Danaher announced that it has entered into a definitive agreement to acquire Masimo Corporation, a specialty diagnostics provider known for pulse oximetry and patient monitoring technologies used primarily in acute care settings. The transaction values Masimo at approximately $9.9 billion in enterprise value, with Danaher agreeing to acquire all outstanding Masimo common stock for $180 per share in cash.
The acquisition is designed to strengthen Danaher’s diagnostics portfolio by adding Masimo’s monitoring technologies and sensor innovations. Masimo’s capabilities in pulse oximetry and AI-enabled patient monitoring are expected to complement Danaher’s existing diagnostics businesses, which include Radiometer, Leica Biosystems, Cepheid and Beckman Coulter Diagnostics.
Following the closing of the transaction, Masimo will operate as a standalone operating company within Danaher’s Diagnostics segment. The company expects the deal to contribute to earnings growth, with Masimo anticipated to be accretive to adjusted diluted net earnings per share by $0.15 to $0.20 in the first full year after completion and approximately $0.70 in the fifth full year.
Danaher expects Masimo to deliver high single-digit core revenue growth over the long term and projects that the business will generate more than $530 million in EBITDA in 2027. The company also anticipates achieving more than $125 million in annual cost synergies and more than $50 million in annual revenue synergies by the fifth full year following the acquisition.
The transaction is expected to close in the second half of 2026, subject to customary conditions including regulatory approvals and approval by Masimo shareholders. Danaher plans to fund the acquisition through a combination of cash on hand and proceeds from debt financing. Citi served as financial advisor to Danaher, with Goldman Sachs providing advisory support, while Kirkland & Ellis LLP acted as legal advisor.
KEY QUOTES:
“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.”
Rainer M. Blair, President And Chief Executive Officer, 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.”
Julie Sawyer Montgomery, Executive Vice President For Diagnostics, Danaher
