Masimo will become a standalone operating company within Danaher’s diagnostics segment, adding its pulse oximetry and patient monitoring technologies to the portfolio.
Key takeaways:
- Danaher Corp has entered a definitive agreement to acquire Masimo Corp for $180 per share in cash.
- The transaction has a total enterprise value of approximately $9.9 billion.
- Upon closing, Masimo will operate as a standalone company within Danaher’s Diagnostics segment.
- The deal is expected to close in the second half of 2026, pending regulatory and shareholder approvals.
Danaher Corp has entered into a definitive agreement to acquire Masimo Corp, a provider of pulse oximetry and patient monitoring solutions.
Under the terms of the agreement, Danaher will acquire all outstanding shares of Masimo common stock for $180 per share in cash. The transaction represents a total enterprise value of approximately $9.9 billion, including assumed indebtedness and net of acquired cash.
Masimo is recognized for its specialty diagnostics, particularly in pulse oximetry and patient monitoring technologies used primarily in acute care settings. Following the completion of the transaction, Masimo will function as a standalone operating company within Danaher’s Diagnostics segment, joining other operating companies such as Radiometer, Leica Biosystems, Cepheid, and Beckman Coulter Diagnostics.
“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,” says Rainer M. Blair, president and CEO of Danaher, in a release. “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.”
The acquisition is expected to enhance Danaher’s diagnostic capabilities through the integration of Masimo’s sensor technologies.
“Masimo’s advanced sensor technology and AI-enabled monitoring bring powerful new capabilities to our diagnostics portfolio,” says Julie Sawyer Montgomery, executive vice president for diagnostics at Danaher, in a release. “Integrating these strengths into Danaher will create meaningful opportunities to innovate for clinicians and improve decision making in critical settings.”
Financially, the purchase price represents a transaction multiple of approximately 18x estimated 2027 EBITDA. Danaher projects the acquisition will be accretive to adjusted diluted net earnings per common share by $0.15 to $0.20 in the first full year following completion. Under Danaher’s ownership, Masimo is expected to generate EBITDA of more than $530 million in 2027.
The transaction is anticipated to close in the second half of 2026, subject to customary closing conditions, including the receipt of applicable regulatory clearances and approval by Masimo shareholders. Danaher expects to fund the acquisition using cash on hand and proceeds from debt financing.
