In a move designed to strengthen its global patient diagnostics market, Danaher Corporation, a Washington-based science and technology firm, plans to merge operations with Masimo Corporation, a leading specialty diagnostics company headquartered in Irvine, California.
In its Feb. 17 announcement, Danaher said it will acquire all of Masimo’s outstanding shares of common stock for $180 per share in cash, carrying a total value of nearly $9.9 billion. The deal prices Masimo at nearly 18 times its estimated 2027 earnings before interest, taxes, depreciation, and amortization, according to Danaher.
Danaher indicated it will fund the acquisition using cash on hand and proceeds from debt financing.
“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.”
Pulse oximetry is a test used to determine the oxygen level of the blood, and measures how well the oxygen is funneled throughout the rest of the body. The painless procedure involves a clipped device placed on a patient’s finger or ear lobe. It assists health care providers in deciding if a patient needs extra oxygen.
Blair noted that the merger will present Masimo an opportunity to expand its reach and continue to improve patients’ conditions, in particular to those in acute care settings.
“Masimo’s advanced sensor technology and AI-enabled monitoring brings powerful new capabilities to our diagnostics portfolio,” Danaher Executive Vice President Julie Sawyer Montgomery added in the announcement.
In its company announcement, Masimo CEO Katie Szyman said that the firm is looking forward to joining Danaher to continue growth as a global leader in patient monitoring.
“Danaher shares our commitment to investing in talent and innovation and will be an ideal fit to help power the next chapter of Masimo,” she said.
Following the merger, Masimo will continue to operate as a stand-alone firm within Danaher’s Diagnostics segment, joining Radiometer, Leica Biosystems, Cepheid, and Beckman Coulter Diagnostics.
Danaher noted that Masimo’s adjusted diluted net earnings per common share are expected to increase by $0.15 to $0.20 in the first year and by $0.70 in the fifth year after the acquisition.
“Masimo is expected to deliver high single-digit core revenue growth over the long-term,” the statement indicates.
As part of Danaher, Masimo’s profits are projected to exceed $530 million in 2027. By the fifth year following the merger, Danaher forecasts realizing more than $125 million of annual cost synergies and more than $50 million of annual revenue synergies.
The transaction is expected to close in the second half of this year, subject to Masimo shareholder approval.
Citi acted as financial adviser to Danaher, and Goldman Sachs provided advisory support. Kirkland & Ellis LLP served as legal adviser to Danaher.
Founded in 1984, Danaher uses advanced technology to provide more accurate diagnoses for patients worldwide. It currently employs more than 60,000 people.
For the fourth quarter of 2025, Danaher reported net earnings of $1.2 billion. It noted that revenues increased 4.5 percent year-over-year to $6.8 billion. Its full-year 2025 net earnings were $3.6 billion.
Founded in 1989, Masimo’s diagnostic products are used on more than 200 million patients internationally, and its pulse oximetry is utilized in top U.S. hospitals. The company currently has close to 3,600 employees.
Masimo will report its fourth-quarter and full-year 2025 results on Feb. 26.