Danaher announced it has entered into a definitive agreement to acquire Masimo, a specialty diagnostics provider known for its pulse oximetry and patient monitoring solutions used primarily in acute care settings.
Under the terms of the agreement, Danaher will acquire all outstanding shares of Masimo common stock for $180 per share in cash, representing a total enterprise value of approximately $9.9 billion, including assumed indebtedness and net of acquired cash. The transaction reflects a multiple of about 18x estimated 2027 EBITDA, or 15x estimated 2027 EBITDA including the full benefit of expected annual synergies.
Upon completion, Masimo will operate as a standalone company within Danaher’s Diagnostics segment, joining Radiometer, Leica Biosystems, Cepheid and Beckman Coulter Diagnostics. Danaher expects Masimo to be accretive to adjusted diluted net earnings per common share by $0.15 to $0.20 in the first full year following closing and by approximately $0.70 in the fifth full year.
Masimo is projected to deliver high single digit core revenue growth over the long term, contributing to an accelerated core revenue growth profile for Danaher’s Diagnostics segment. Under Danaher’s ownership, Masimo is expected to generate EBITDA of more than $530 million in 2027. Danaher also anticipates realizing more than $125 million in annual cost synergies and more than $50 million in annual revenue synergies by the fifth full year after closing.
The transaction is expected to close in the second half of 2026, subject to customary conditions, including regulatory approvals and Masimo shareholder approval. Danaher plans to finance the acquisition using cash on hand and proceeds from debt financing.
Support: Citi is serving as financial advisor to Danaher, and Kirkland & Ellis LLP is acting 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 Corporation
“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 Corporation
