In a major move to bolster its diagnostics portfolio, Danaher Corporation has announced a $9.9 billion agreement to acquire Masimo, a leading innovator in patient monitoring technologies. This acquisition marks one of the largest recent deals in the healthcare diagnostics sector and positions Danaher for continued expansion in digital health.
Danaher, headquartered in Washington, D.C., is renowned for its comprehensive portfolio spanning laboratory equipment, life sciences, and biotechnology. The addition of Masimo, based in Irvine, California, brings advanced sensor technology, AI-enabled monitoring systems, and a strong brand in patient monitoring.
This acquisition is designed to be immediately accretive to Danaher’s adjusted earnings per share, contributing an estimated $0.15–$0.20 in the first year and up to $0.70 by the fifth year. Danaher plans to use a combination of cash on hand and debt financing to fund the purchase.
Masimo’s stock surged over 30% in pre-market trading following the announcement, signaling strong investor confidence in the deal’s value. Conversely, Danaher’s shares saw a modest decline as the market digested the sizable expenditure.
Rainer M. Blair, Danaher’s CEO, highlighted Masimo’s leadership in pulse oximetry and its opportunity to further innovate within the Danaher Business System’s global reach. Katie Szyman, recently appointed CEO of Masimo, emphasized the deal as a chance to scale Masimo innovations worldwide and accelerate the delivery of solutions that transform patient care.
The acquisition culminates an eventful period for Masimo. The company has undergone significant leadership changes, including the appointment of Szyman after a boardroom proxy battle. In 2025, Masimo shifted focus back to healthcare by divesting its consumer audio business, previously acquired in a high-profile deal.
Moreover, Masimo has been engaged in a high-stakes patent dispute with Apple, with a favorable $634 million judgment recently upheld in federal court.
Analysts note that Danaher’s extensive history of healthcare acquisitions and Masimo’s status in a global patient monitoring duopoly make this an unsurprising but significant transaction. Masimo’s advanced monitoring technologies complement Danaher’s diagnostics suite, positioning the combined entity as a formidable player in critical and acute care settings.
The deal is subject to regulatory approval and Masimo shareholder consent. If finalized, it promises to reshape the competitive landscape of medical diagnostics and patient monitoring, fueling innovation and more comprehensive solutions for clinicians worldwide.