Danaher Deal Finalized: Company To Acquire Masimo For $9.9 Billion In Cash

• Danaher anticipates the acquisition will add between $0.15 and $0.20 to adjusted earnings per share in the first full year after closing.
• Masimo will operate as a standalone business inside Danaher’s Diagnostics unit.
• The transaction is expected to close in the second half of 2026.

Danaher Corp. (DHR) announced on Tuesday that it has agreed to acquire Masimo Corp. (MASI) in an all-cash transaction valued at roughly $9.9 billion, expanding its footprint in diagnostics and patient monitoring. 

The deal will entail Danaher paying $180 per share for Masimo. The acquisition price reflects about 18 times Masimo’s projected 2027earnings before interest, taxes, depreciation, and amortization (EBITDA). 

Strategic Growth Benefits

Danaher expects the transaction to strengthen its Diagnostics segment and deliver incremental earnings growth over time. Following the announcement, Danaher stock traded over 6% lower, and Masimo stock surged over 34% in Tuesday’s premarket. 

On Stocktwits, retail sentiment around Masimo shifted to ‘extremely bullish’ from ‘neutral’ territory the previous day. Message volume changed to ‘extremely high’ from ‘normal’ levels in 24 hours. 

Following completion, Masimo will operate as a standalone business inside Danaher’s Diagnostics unit, joining brands such as Radiometer, Leica Biosystems, Cepheid, and Beckman Coulter Diagnostics. Masimo specializes in pulse oximetry and other monitoring systems used in hospitals.

Financial Impact 

Danaher anticipates the acquisition will add between $0.15 and $0.20 to adjusted earnings per share in the first full year after closing, with the contribution rising to approximately $0.70 per share by year five. 

"Masimo's advanced sensor technology and AI-enabled monitoring bring powerful new capabilities to our diagnostics portfolio.”

-Julie Sawyer Montgomery, Executive Vice President for Diagnostics, Danaher

Under Danaher’s ownership, Masimo is forecast to generate more than $530 million in EBITDA by 2027. Management also expects to capture over $125 million in annual cost efficiencies and more than $50 million in annual revenue synergies within five years of closing.

The transaction is expected to close in the second half of 2026.

DHR stock has gained over 3% in the last 12 months. 

Also See: Warner Bros. Reopens Paramount Talks As Netflix Merger Vote Looms

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