Business | Danaher to Acquire Masimo Corporation in $9.9 Billion Deal
Senior Technology Correspondent · AI, startups & MeitY policy
Quick summary
Danaher Corporation announced on , a definitive agreement to acquire specialty diagnostics provider Masimo Corporation for approximately $9.9 billion. This strategic acquisition is expected to bolster Danaher's Diagnostics segment, contributing to earnings and accelerating revenue growth, with the transaction anticipated to close in the second half of 2026.
Danaher Finalises $9.9 Billion Acquisition of Masimo Corporation
Danaher Corporation announced on , a definitive agreement to acquire specialty diagnostics provider Masimo Corporation for approximately $9.9 billion in cash, including assumed indebtedness. This strategic move is poised to expand Danaher's footprint in the patient monitoring and diagnostics market.
Key Details of the Acquisition
Under the terms of the agreement, Danaher will acquire all outstanding shares of Masimo common stock for $180 per share in cash. The total enterprise value of the transaction is approximately $9.9 billion, which accounts for assumed indebtedness and is net of acquired cash. Masimo is slated to operate as a standalone company within Danaher's Diagnostics segment, joining other entities such as Radiometer, Leica Biosystems, Cepheid, and Beckman Coulter Diagnostics. Danaher expects to fund the acquisition using cash on hand and proceeds from debt financing.
Official Position and Company Statements
Rainer M. Blair, President and Chief Executive Officer of Danaher, expressed enthusiasm for welcoming the Masimo team, describing the acquisition as an "exceptional strategic fit". He highlighted that Masimo's leadership in pulse oximetry and patient monitoring solutions, combined with its trusted brand and differentiated technology, will significantly strengthen Danaher's diagnostics franchise. Julie Sawyer Montgomery, Danaher's Executive Vice President for Diagnostics, added that Masimo's advanced sensor technology and AI-enabled monitoring will introduce powerful new capabilities to Danaher's diagnostics portfolio. The boards of both Masimo and Danaher have unanimously approved the all-cash deal.
Market Outlook and Expected Impact
The acquisition is projected to be accretive to Danaher's adjusted diluted net earnings per common share by $0.15 to $0.20 in the first full year and approximately $0.70 in the fifth full year following completion. Masimo is also expected to deliver high-single digit core revenue growth over the long-term, which would accelerate Danaher's Diagnostics segment core revenue growth profile. Furthermore, Danaher anticipates realizing more than $125 million in annual cost synergies and over $50 million in annual revenue synergies by the fifth full year after the acquisition's completion.
Timeline and Next Steps
The transaction is anticipated to close in the second half of . It remains subject to customary closing conditions, including obtaining necessary regulatory clearances and Masimo shareholder approval.
Context and Background
Danaher Corporation is a global science and technology innovator with a diverse portfolio. Masimo Corporation is recognized as a leading specialty diagnostics provider, primarily known for its pulse oximetry and other patient monitoring solutions, particularly in acute care settings. This acquisition reflects a continued trend of strategic consolidation and expansion within the global healthcare and diagnostics sectors.
Key Takeaways
- Danaher Corporation has entered into a definitive agreement to acquire Masimo Corporation for approximately $9.9 billion.
- Masimo will operate as a standalone company within Danaher's Diagnostics segment.
- The acquisition is expected to contribute to Danaher's earnings and accelerate its Diagnostics segment's core revenue growth.
- The transaction is anticipated to close in the second half of , pending regulatory and shareholder approvals.
People Also Ask
What is Danaher Corporation acquiring?
Danaher Corporation is acquiring Masimo Corporation, a leading provider of specialty diagnostics and patient monitoring solutions, including pulse oximetry.
What is the value of the Danaher-Masimo deal?
The acquisition is valued at approximately $9.9 billion in cash, which includes assumed indebtedness and is net of acquired cash.
How will Masimo operate after the acquisition?
Upon completion of the transaction, Masimo will operate as a standalone company and brand within Danaher's Diagnostics segment.
When is the acquisition expected to close?
The transaction is anticipated to close in the second half of , subject to regulatory clearances and Masimo shareholder approval.