Danaher Corporation (NYSE:DHR) announced it has entered into a definitive agreement to acquire Masimo Corporation (NASDAQ: MASI) in an all-cash transaction valued at approximately $9.9 billion, as the life sciences and diagnostics company looks to expand its patient monitoring capabilities.
Under the terms of the agreement, Danaher will acquire all outstanding Masimo common shares for $180 per share in cash. The deal implies an enterprise value of about $9.9 billion, including assumed indebtedness and net of acquired cash, and represents a transaction multiple of roughly 18 times estimated 2027 EBITDA, or about 15 times when including the full benefit of expected annual synergies.
Danaher said the acquisition will strengthen its Diagnostics segment by adding Masimo’s noninvasive monitoring technologies, including pulse oximetry and related patient monitoring solutions primarily used in acute care settings.
Upon closing, Masimo is expected to operate as a standalone business within Danaher’s Diagnostics portfolio alongside Radiometer, Leica Biosystems, Cepheid and Beckman Coulter Diagnostics.
“We are excited to welcome the Masimo team to Danaher,” Danaher CEO Rainer Blair said in a statement. “Masimo is a leader in pulse oximetry and other patient monitoring solutions, which combined with its trusted brand and differentiated technology, will greatly strengthen our diagnostics franchise.”
Danaher expects the transaction to be modestly accretive in the near term. The company projects the acquisition will add $0.15 to $0.20 to adjusted diluted net earnings per share in the first full year after closing, increasing to approximately $0.70 per share by the fifth full year.
Masimo is also expected to contribute high-single-digit core revenue growth over the long term, supporting the Diagnostics segment’s growth profile. Danaher said Masimo is projected to generate EBITDA of more than $530 million in 2027. The company 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.
The transaction is expected to close in the second half of 2026. Danaher plans to fund the acquisition with cash on hand and proceeds from debt financing.
Shares of Danaher fell almost 6% on the update to about $200 just after Tuesday’s opening bell, while Massimo Group shares surged almost 35% to about $175.