Danaher to Acquire Masimo for $9.9 Billion, Integrating Pulse Oximetry and Remote Monitoring into Diagnostics Segment

According to the agreement reached in February, the headquarters is located in Irvine, California.Masimo to Be Integrated into Danaher's Diagnostics Business in Washington, D.C.After the transaction is completed, Masimo will retain its brand and R&D system as an independently operated subsidiary. Its core product lines—including pulse oximeters, the W1 medical-grade smartwatch, and remote patient monitoring systems—will be directly integrated into Danaher's digital health platform. Danaher stated that this acquisition will strengthen its position in the precision medicine field, particularly creating synergies in chronic disease management and operating room solutions.

Masimo disclosed that the records of the shareholders' meeting showed that more than 75% of the outstanding shares were represented at the virtual annual meeting on May 1, with 98.3% voting in favor of the merger proposal.According to the terms of the transaction, upon the effectiveness of the merger, each existing share of Masimo common stock will automatically be converted into the right to receive $180 in cash, without interest and non-transferable.Notably, the transaction still requires antitrust reviews by the U.S. Federal Trade Commission (FTC) and the European Commission, as well as the fulfillment of other customary closing conditions. Masimo CEO Katie Szyman emphasized in a statement: "After the merger, we will maintain strategic autonomy as part of Danaher's diagnostics segment, continuing to advance global market expansion and technological innovation."

If the transaction is successfully completed, the revenue share of Danaher's medical segment will increase to 38%, making it the company’s largest business unit. Analysts from Goldman Sachs’ healthcare sector noted that Masimo’s continuous monitoring technology complements Danaher’s laboratory diagnostic equipment, offering significant commercial value especially in intensive care and home care scenarios. However, some investors are concerned whether the $9.9 billion valuation fully reflects Masimo’s growth potential in the wearable medical device market — the company’s W1 watch saw a 45% year-over-year increase in global shipments last year, accounting for 18% of its total revenue.

As of the closing on May 4, Masimo's stock price closed at $179.25, near the acquisition price; Danaher's stock price rose slightly by 0.8% to $284. The two parties expect the transaction to be completed in the fourth quarter of 2026, or by March 2027 at the latest if there are delays in regulatory approval.

This major acquisition marks the latest twist for Masimo after several tumultuous years. In 2024, founder and CEO Joe Kiani resigned following a shareholder vote in September, after being removed as chairman of the board during a prolonged proxy fight. By the end of the same year, the company had implemented layoffs at its headquarters.

In 2025, Masimo appointed Szyman, a long-time leader of Edwards Critical Care, as its new CEO. Under Szyman's leadership, the company advanced the sale of its consumer audio business, shifting its focus to medical technology, and completed a $350 million transaction in September 2025, bringing closure to the chapter that began with the $1 billion acquisition of Sound United in 2022.

Meanwhile, Masimo continues its prolonged legal battle with tech giant Apple. Recently, the company opposed Apple's appeal to overturn the ruling that awarded Masimo $634 million in damages, following a federal jury verdict that found Apple had infringed on Masimo's pulse oximeter patents.

This acquisition is also one of Danaher's most strategically significant transactions in recent years. Danaher, globally recognized in the medical industry as the "King of Mergers and Acquisitions," has an extensive business layout in the healthcare sector and has completed hundreds of acquisitions over the past 40 years. Analysts predict that it has the capability to fund this transaction through a combination of cash and debt. More than two decades ago, Danaher acquired Radiometer Medical, whose monitoring systems cover parameters identical to Masimo’s technology. Furthermore, Radiometer has already integrated Masimo SET technology into some of its monitors and expanded its point-of-care hemoglobin and glucose testing business by acquiring HemoCue in 2013. Therefore, analysts believe that such a potential deal by DHR could aim to further strengthen its position in the patient monitoring field.

The acquisition of Masimo by Danaher in this transaction could have profound implications for both parties involved as well as the entire healthcare industry.