Danaher's $9.9B Acquisition of Masimo Cleared by Shareholders

Source: Device Home

On May 4, 2026, Masimo (NASDAQ: MASI), a medical and health technology company, announced that its shareholders had voted to approve the acquisition offer proposed by Danaher (NYSE: DHR). The transaction is valued at $9.9 billion, equivalent to RMB 67.6 billion, with a cash offer price of $180 per share, representing a premium of approximately 25% over Masimo's closing price on February 10.

According to the agreement reached in February, Masimo, headquartered in Irvine, California, will be integrated into Danaher's diagnostics business segment in Washington, D.C. After the transaction is completed, Masimo will remain as an independently operated subsidiary, retaining its brand and R&D system. 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 presence in the precision medicine field, particularly creating synergies in chronic disease management and operating room solutions.

Masimo's disclosed shareholder meeting records show that at the virtual shareholders' meeting on May 1, more than 75% of the outstanding shares were represented in the vote, with 98.3% in favor of the merger proposal. According to the terms of the deal, upon the effectiveness of the merger, Masimo’s existing common stock will automatically convert into the right to receive $180 in cash per share, without interest and non-transferable. Notably, the transaction still requires antitrust review 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 drive global market expansion and technological innovation."

If the deal goes through successfully, Danaher's healthcare segment revenue will increase to 38%, becoming its largest business unit. Goldman Sachs' healthcare industry analysts 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 share price closed at $179.25, close to the acquisition price; Danaher's share price slightly increased by 0.8% to $284. Both parties expect the transaction to be completed in the fourth quarter of 2026, and if there is a delay in regulatory approval, it will not be later than March 2027.

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, layoffs were implemented at the company's 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 deal 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 of a $634 million payout to Masimo, after a federal jury found that 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. Radiometer Medical, acquired by Danaher more than two decades ago, has monitoring systems that cover the same parameters as Masimo’s technology. Moreover, Radiometer has integrated Masimo SET technology into some of its monitors and expanded its point-of-care hemoglobin and blood glucose testing business by acquiring HemoCue in 2013. Therefore, analysts believe that such a potential deal by DHR could be aimed at deepening its presence in the patient monitoring field.

The acquisition of Masimo by Danaher in this transaction may have a profound impact not only on both parties but also on the entire medical industry. We will continue to follow up on subsequent developments.