Bengaluru: Danaher will acquire Masimo in a $9.9 billion deal, as it looks to expand its diagnostics portfolio with the California-based medtech company’s pulse oximeter and other devices.
The companies said on Tuesday that Danaher will pay $180 per share to buy Masimo. The offer represents a premium of 38.3% to Masimo’s last close.
Shares of Masimo rose 34.54% to $175.10 in morning trading, while those of life science company Danaher fell 3.10%.
J.P.Morgan analysts said a medtech target is “surprising” and expects the deal to weigh on Danaher’s shares as investors could read it as a sign that potential targets in the company’s core markets are less favorable in the current environment.
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.
The deal with Masimo 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 business will fold into Danaher’s diagnostics division, which makes this area higher quality, and should prove to be a good deal for Danaher over time,” Bernstein analyst Christian Moore said.
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.
The company is locked in a patent dispute with Apple . Masimo has accused the iPhone maker of poaching employees to steal its pulse-oximetry innovations to use in Apple Watches.
Danaher expects a 15 to 20 cents boost to its adjusted diluted net earnings per common share by in the first full year and about 70 cents in the fifth full year following the completion of the acquisition.
Danaher and Masimo expect the deal to close by the second half of 2026.
(Reporting by Gnaneshwar Rajan and Christy Santhosh in Bengaluru; Editing by Shinjini Ganguli)
