Feb 16 - Danaher is reportedly on the verge of agreeing to buy pulse oximeter manufacturer Masimo in a transaction valued at nearly $10 billion, according to reports on Monday that cited unnamed sources. Danaher and Masimo did not immediately respond to requests for comment.
The proposed price stands in contrast to the two companies' market capitalizations: Masimo is valued at roughly $7 billion, while Danaher has a valuation in excess of $150 billion. The prospective deal would be Danaher's largest acquisition since it paid $5.7 billion in 2023 to acquire protein consumables maker Abcam.
For Danaher, which supplies tools and technologies used by pharmaceutical companies to develop and manufacture drugs, the purchase would represent a strategic expansion into patient-monitoring hardware such as oximeters. Masimo is best known for its pulse oximetry technology and has been engaged in a protracted legal dispute with a major smartphone manufacturer over patents related to blood-oxygen measurement.
That litigation yielded a November jury verdict in California finding that the smartphone company infringed a Masimo patent, with damages of $634 million awarded to Masimo.
Masimo's shares have experienced a steep decline from their peak, dropping by more than 57% since November 2021.
The company’s recent corporate history includes a $1 billion acquisition of audio-products maker Sound United in early 2022. That purchase precipitated a contentious proxy battle with activist investor Politan Capital Management and culminated in the removal of founder Joe Kiani as CEO in 2024. Sound United was later sold to Harman, a Samsung affiliate, last year for $350 million.
Reports added that Danaher's potential agreement for Masimo could be announced as early as Tuesday.
Investors may be assessing what this transaction means for Danaher's product mix and strategic focus. Questions also remain about integration of Masimo's patient-monitoring portfolio into Danaher’s existing businesses and how the companies will address ongoing legal and operational matters.
Separately, a market-oriented analysis tool referenced Masimo’s potential buyer in an investor advisory context, asking whether Danaher stock is an attractive purchase at present. That tool evaluates companies monthly using more than 100 financial metrics to compare fundamentals, momentum, and valuation, and it noted past performance examples for context.
Key points
- Danaher is close to acquiring Masimo for nearly $10 billion, according to reports citing unnamed sources; both companies did not immediately respond to requests for comment.
- The transaction would be Danaher’s biggest deal since its $5.7 billion acquisition of Abcam in 2023 and would expand Danaher into patient-monitoring devices.
- Masimo has faced legal and corporate turmoil, including a $634 million jury award related to a patent dispute and management changes following a proxy battle.
Risks and uncertainties
- Regulatory, integration or operational challenges tied to folding Masimo’s monitoring products into Danaher’s structure could affect execution - relevant to healthcare and industrial technology sectors.
- Ongoing legal issues and past litigation outcomes, including the $634 million patent damages award, create potential liabilities and uncertainties for the combined entity - relevant to MedTech and legal risk exposure.
- Masimo’s significant share price decline since late 2021 and prior activist conflicts point to potential shareholder and governance risks following an acquisition - relevant to equity markets and corporate governance considerations.