Masimo's Board Backs Danaher's $9.9B Cash Acquisition Proposal

Masimo MASI recently entered into a definitive agreement, pursuant to which it will be acquired by the global conglomerate, Danaher DHR, for a total consideration of $9.9 billion.

Per the deal, Danaher is offering $180 in cash for each share of Masimo. The transaction is expected to close in the second half of 2026, subject to the satisfaction or waiver of certain closing conditions, including the receipt of required regulatory approvals.

The acquisition deal has been unanimously approved by the board of directors of both companies. Following the completion of the deal, Masimo will operate as a standalone business unit and brand within Danaher’s Diagnostics segment. The acquisition is expected to boost Danaher’s product portfolio for acute care settings.

Price Performance

Shares of Masimo have surged almost 35% since the announcement of the deal on Feb. 13. Over the past six months, MASI’s shares have risen 19.6% against the industry’s decline of 7%. The S&P 500 Index has gained 8.8% in that time period.

Prior to this deal, Masimo’s management had evaluated a broad range of opportunities, including pursuing a standalone strategy and engaging with multiple other potential partners. Ultimately, the company’s board concluded that the deal with Danaher was the most value-enhancing path for Masimo and all its stakeholders.

A Brief Description of Masimo

Masimo is a global medical technology company that develops and produces a wide array of industry-leading monitoring technologies, including innovative measurements, sensors, patient monitors, and automation and connectivity solutions. The company introduced Masimo SET Measure-through Motion and Low Perfusion pulse oximetry in 1995. Masimo SET is estimated to be used on more than 200 million patients around the world each year and was the primary pulse oximetry at all 10 top U.S. hospitals in 2025.

The company started trading publicly following its IPO in August 2007 at a price of $17 per share. MASI has boosted the wealth of its shareholders significantly as it recorded a high of $305.21 in the month of November 2021. However, the share price started a steep decline following that month and fell more than 60% over the next five months. Yet, the Danaher offer still reflects a significant return of more than 10 times from MASI’s IPO price.

The significant fall in Masimo’s share price in early 2022 can be potentially linked to the addition of Sound United with the acquisition of Viper Holdings Corporations. Several investors were of the view that the transaction does not synergize with MASI’s core business of monitoring technologies. The Sound United business was finally sold in 2025. Meanwhile, Masimo was also fighting a patent infringement lawsuit with tech behemoth Apple AAPL.

In 2020, MASI first filed its complaint against Apple for infringement of several patents, for trade secret misappropriation, and for ownership and correction of inventorship of a number of Apple patents. The lawsuit is still open, with the latest verdict announced in November 2025, awarding Masimo $634 million in damages and confirming patent (Masimo Patent No. 10,433,776) infringement by Apple. Within this turmoil, there have been key changes to its boards following concerns raised by certain investor groups, including the resignation of its founder, Joe Kiani, from the post of CEO in September 2024.

Industry Prospects

Per a report from Grand View Research, the global pulse oximeter market was estimated to be $3,338.4 million in 2023 and is expected to witness a CAGR of 6.9% to $5,328.7 million in 2030. The rising cases of respiratory and cardiovascular diseases globally are expected to drive the demand for continuous monitoring devices, including pulse oximeters. Moreover, technological advancements, and rising adoption of home healthcare and remote patient monitoring are other likely to be other key factors.

Danaher is likely to benefit from the acquisition of Masimo on the back of the leading position of the latter’s product in the U.S. market amid the rising demand for pulse oximeters.

Recent News

Last month, Masimo announced its preliminary results for the fourth quarter and full-year 2025. The company reported preliminary sales of $411 million for the quarter, representing approximately 12% growth on a reported basis and 11% growth on a constant currency basis. It expects its adjusted earnings per share to be more than $1.54. The preliminary sales and adjusted EPS were better than the Zacks Consensus Estimates.

For the full year, revenues are expected to be approximately $1,523 million, representing approximately 9% growth on a reported basis and constant currency basis.

Masimo Corporation Price

Masimo Corporation price | Masimo Corporation Quote

Zacks Rank & Another Key Pick

Masimo currently carries a Zacks Rank #2 (Buy).

Veracyte VCYT is another stock to consider from the broader medical space, flaunting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Veracyte reported third-quarter 2025 adjusted earnings per share (EPS) of 51 cents, which surpassed the Zacks Consensus Estimate by 59.4%. Revenues of $131.8 million beat the Zacks Consensus Estimate by 5.5%.

VCYT’s earnings are estimated to decline 3% in 2026 compared to the industry’s 16.8% growth. The company beat on earnings in each of the trailing four quarters, the average surprise being 45.1%.

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This article originally published on Zacks Investment Research (zacks.com).

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