Danaher Corporation (NYSE: DHR) has entered into a definitive agreement to acquire Masimo Corporation (NASDAQ: MASI) in an all-cash transaction valued at approximately $9.9 billion, expanding its presence in patient monitoring and diagnostics.(Yahoo)
Under the agreement, Danaher will acquire all outstanding Masimo common shares for $180 per share in cash, implying an enterprise value of about $9.9 billion, including assumed indebtedness and net of acquired cash. The transaction represents roughly 18 times estimated 2027 EBITDA, or about 15 times when including the full benefit of expected annual synergies. Danaher plans to finance the acquisition with cash on hand and proceeds from debt financing, and the deal is expected to close in the second half of 2026.
Masimo will operate as a standalone business within Danaher’s Diagnostics segment, alongside Radiometer, Leica Biosystems, Cepheid and Beckman Coulter Diagnostics. The acquisition will add Masimo’s noninvasive monitoring technologies, including pulse oximetry and related patient monitoring solutions primarily used in acute care settings. Danaher CEO Rainer Blair said the addition of Masimo’s differentiated technology and strong brand will further strengthen the company’s diagnostics franchise.
Danaher expects the transaction to be modestly accretive in the near term, projecting an increase of $0.15 to $0.20 in adjusted diluted net earnings per share in the first full year after closing, rising to approximately $0.70 per share by the fifth full year. Masimo is projected to generate EBITDA of more than $530 million in 2027 and deliver high-single-digit core revenue growth over the long term. Danaher expects to realize more than $125 million in annual cost synergies and more than $50 million in annual revenue synergies by the fifth full year following completion.
Following the announcement, Danaher shares fell nearly 6% to around $200 shortly after the opening bell, while Masimo shares surged almost 35% to about $175.