Premium Offer to Expand Diagnostics
Danaher agreed to acquire medical device maker Masimo in a deal valued at $9.9 billion, marking the life sciences company’s largest transaction in years as it strengthens its diagnostics capabilities.
Under the agreement, Danaher will pay $180 per share, representing a 38.3% premium to Masimo’s most recent closing price. The acquisition surpasses Danaher’s $5.7 billion purchase of Abcam in 2023 and signals a renewed push into higher-growth healthcare technologies.
Strategic Move Into Patient Monitoring
Danaher, known for supplying tools and technologies that support pharmaceutical research and drug manufacturing, will expand further into clinical monitoring through Masimo’s portfolio of non-invasive pulse oximeters.
Masimo’s technology will complement Danaher’s existing invasive diagnostics equipment, including Radiometer blood analysis systems. The combination positions Danaher to offer a more comprehensive suite of patient monitoring and hospital diagnostic solutions.
The deal comes as life sciences companies navigate headwinds including regulatory uncertainty around U.S. drug pricing, shifting tariff policies and reduced research funding across academic and government institutions.
Market Reaction and Financial Impact
Shares of Masimo surged more than 34% in premarket trading to $174.89 following the announcement, reflecting investor optimism over the premium valuation. Meanwhile, Danaher shares declined about 6%, a common reaction in large cash acquisitions where buyers absorb financing or integration risk.
Masimo currently carries a market capitalization of roughly $7 billion, compared with Danaher’s valuation exceeding $150 billion.
The transaction is expected to close in the second half of 2026, subject to regulatory approvals and customary conditions.
Earnings Outlook and Company Background
Danaher projects the acquisition will add between $0.15 and $0.20 to adjusted diluted earnings per share in the first full year following completion. By the fifth full year, the contribution is expected to rise to approximately $0.70 per share.
Masimo recently repositioned itself as a focused medical technology company after divesting its Sound United audio division to Samsung’s Harman for $350 million. The company has also been engaged in a high-profile patent dispute with Apple, with a federal jury in California awarding Masimo $634 million last November over alleged infringement related to blood-oxygen reading technology.
The acquisition underscores Danaher’s strategy of building scale in high-margin healthcare niches while diversifying beyond research-focused instrumentation into bedside and real-time patient monitoring technologies.
