U.S. healthcare manufacturer Danaher Corp. appears to be on the verge of a significant acquisition, with the Financial Times reporting that the company is close to finalizing a near $10 billion purchase of medical technology specialist Masimo Corporation. Sources familiar with the matter told the newspaper the agreement could be announced as early as Tuesday.
If completed at the reported level, the transaction would place a premium on Masimo relative to its market capitalization, which stood at nearly $7 billion as of Friday's close. That valuation uplift would reflect a substantial take-private or takeover price relative to the firm's public market value.
Masimo is known for producing medical monitoring equipment, among them pulse oximeters, and has been engaged in legal wrangling over intellectual property. The company previously accused Apple Inc. of infringing its intellectual property rights related to monitoring technology.
Danaher has a track record of sizable dealmaking. Over the past 25 years the company has pursued numerous acquisitions, including a noteworthy $21.4 billion purchase of Cytiva in 2020. The Cytiva deal is among the larger transactions in Danaher’s recent corporate history and demonstrates the scale at which the company has operated in building its healthcare and life sciences portfolio.
The potential Masimo sale, if confirmed, would be another substantive move for Danaher and would involve firms active in the medical devices and healthcare technology sectors. Market participants following medical technology, healthcare equipment manufacturers, and broader healthcare services could be tracking the announcement closely for its implications on consolidation trends in the industry.
Key points
- Danaher is reported to be nearing a near $10 billion acquisition of Masimo, with an announcement possibly as soon as Tuesday.
- The proposed deal would value Masimo above its nearly $7 billion market capitalization reported at Friday's close.
- Masimo produces medical monitoring devices, including pulse oximeters, and has accused Apple of infringing its intellectual property; Danaher has completed major deals before, including a $21.4 billion acquisition of Cytiva in 2020.
Risks and uncertainties
- Timing uncertainty - the report indicates the announcement could arrive as early as Tuesday, but the timing is not confirmed.
- Valuation dynamics - the deal is reported to be at a premium to Masimo's market cap, which may affect shareholder and market responses in the medical technology sector.
- Legal and IP considerations - Masimo's prior accusations of intellectual property infringement involving another major technology company introduce legal context that could be relevant to ongoing corporate strategy and litigation risk.
Market participants and observers in the healthcare equipment, medical technology, and broader healthcare sectors will likely monitor for an official announcement to clarify terms, timing, and potential impacts on company operations and competitive dynamics.