Danaher to buy Masimo in $9.9 billion diagnostics deal
Danaher agreed to acquire Masimo for $9.9 billion, paying $180 per share to expand its diagnostics portfolio into blood oxygen monitoring and patient monitoring devices. Danaher also launched nearly €3 billion in senior notes to help fund the deal, which is expected to close by the second half of 2026.
Danaher will acquire Masimo in a $9.9 billion deal as it looks to expand its diagnostics portfolio with devices to monitor blood oxygen levels. Danaher will pay $180 per share, a 38.3% premium to Masimo's last close, and expects the acquisition to close by the second half of 2026. The financing is intended to help fund Danaher’s pending acquisition of Masimo, and Danaher has launched a major euro-denominated debt offering of nearly €3 billion in senior notes.
The deal broadens Danaher’s diagnostic segment, complementing its invasive Radiometer blood analyzer devices with Masimo’s non-invasive pulse oximeters, brain function and respiration monitoring devices, among other products. The acquisition would expand Danaher’s presence in patient monitoring and medical devices.
The deal marks a rare move beyond Danaher’s core drug-development tools business to gain a foothold in the market for blood oxygen monitoring products. Life sciences firms, which supply drug development tools, have been grappling with tariff uncertainty and softer academic and government research funding, and therefore looking to diversify and boost non-core segments.
Danaher expects a 15 to 20 cents boost to adjusted diluted net earnings per common share in the first full year and about 70 cents in the fifth full year following completion of the acquisition. Masimo recently transformed itself into a pure-play med-tech firm after selling its Sound United unit, which held audio brands Denon and Marantz, to Samsung’s Harman last year for $350 million.
Masimo shares jumped 34% to $174.48, while Danaher shares fell 3.5% and were on track to wipe off more than $5 billion from the company’s $150 billion market capitalization. For Danaher, the debt issuance adds funding capacity for the Masimo deal and changes the mix of its liabilities.