Danaher Acquires Masimo for $9.9 Billion to Expand Patient Monitoring Portfolio
核心洞察
Danaher (搜索) will acquire pulse oximeter (搜索) maker Masimo for $9.9 billion at $180 per share, representing a 38.3% premium to expand its diagnostics portfolio into patient monitoring technologies.
The acquisition allows Danaher (搜索) to complement its invasive Radiometer blood analyzer (搜索) devices with Masimo's non-invasive pulse oximeters and gain a foothold in the growing patient-monitoring device market.
Masimo is expected to add $0.15 to $0.20 to Danaher (搜索)'s adjusted diluted net earnings per share in the first full year and about $0.70 in the fifth full year following completion.
Life sciences giant Danaher (搜索) Corp. announced Tuesday it will acquire Irvine-based medical technology company Masimo for $9.9 billion, marking the company's largest deal since 2023 as it expands its diagnostics portfolio into patient monitoring technologies.
Under the agreement, Danaher (搜索) will pay $180 per share in cash for Masimo, representing a premium of 38.3% to the company's Friday closing price. The transaction is expected to be completed in the second half of 2026.
Strategic Expansion into Patient Monitoring
The acquisition allows Danaher (搜索), which provides tools and technologies that help pharmaceutical companies develop and manufacture drugs, to expand into patient-monitoring products such as oximeters. Masimo's non-invasive pulse oximeters will complement Danaher's invasive Radiometer blood analyzer (搜索) devices, creating a more comprehensive monitoring portfolio.
"Danaher (搜索)'s interest in Masimo's market-leading patient monitoring technology is understandable," said Stifel analyst Rick Wise. "To us, the Danaher acquisition makes a lot of strategic sense for Masimo and its relevant stakeholders."
Analysts expect the patient-monitoring device market to grow at a high single-digit to low double-digit pace through the early 2030s, driven by aging populations and rising rates of chronic disease.
Financial Impact and Market Response
Masimo is expected to add $0.15 to $0.20 to Danaher (搜索)'s adjusted diluted net earnings per common share in the first full year following completion of the acquisition, with contributions growing to about $0.70 in the fifth full year.
Shares of Masimo rose as much as 35% when markets opened in New York following the announcement, while Danaher (搜索)'s stock fell as much as 5.5%. Masimo had dropped 28% over the past 12 months through Friday's close.
Danaher's Acquisition Strategy
This represents Danaher (搜索)'s biggest deal since its $5.7 billion purchase of protein consumables maker Abcam (搜索) in 2023. The company is known for growing through regular acquisitions, completing "hundreds over the past 40+ years," according to BTIG analyst Marie Thibault.
Danaher (搜索) develops products used in biotechnology, life sciences and diagnostics, operating businesses including Beckman Coulter (搜索) in Brea, Cepheid in Sunnyvale, and Massachusetts-based Cytiva, the former GE Healthcare Life Sciences unit it acquired for $21 billion in 2020.
Bloomberg Intelligence analyst Jean-Yves Coupin noted that investors were anticipating a new, large Danaher (搜索) deal because the company hadn't completed one recently, and buying into a market where it doesn't have much of a business raises fewer antitrust concerns. Coupin added that Danaher still has room for another $5 billion to $10 billion acquisition by the end of the year if it chooses.
Masimo's Transformation and Legal Battles
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 (搜索)'s Harman last year for $350 million.
The company has been involved in a long-running legal battle with Apple (搜索) Inc. over health-tracking technology, including a years-long dispute over the blood oxygen monitoring feature on Apple's smartwatch. In November, a California federal jury awarded Masimo $634 million after finding that Apple Watch's heart-rate alerts infringed one of its patents.
Market Context
Life science firms have been grappling with uncertainty around drug pricing regulations in the U.S., potential tariff policies, and softer academic and government research funding. The acquisition provides Danaher (搜索) with diversification into the relatively stable patient monitoring sector.
Masimo has a market capitalization of about $7 billion, while Danaher (搜索) is valued at over $150 billion, according to Reuters calculations.