TLDR
- Danaher acquiring Masimo in $9.9 billion deal at $180 per share, representing 38.3% premium
- Masimo stock jumped 34% Tuesday, tracking toward largest single-day gain in company history
- Danaher shares fell 3.5% as market weighs hefty premium paid for medical device maker
- Deal expands Danaher’s diagnostics portfolio as Masimo joins as stand-alone operating unit
- All-cash transaction expected to close pending regulatory approvals and customary conditions
Masimo shares exploded higher Tuesday after Danaher announced a $9.9 billion acquisition agreement. The all-cash deal values the pulse oximeter manufacturer at $180 per share.
Trading data shows Masimo stock surging approximately 34% to above $174 in morning action. The move puts shares on pace for the biggest one-day percentage gain since at least 2007.
Danaher is paying a substantial premium to secure the deal. The $180 offer sits 38.3% above Masimo’s Friday closing price.
Investors appear pleased with the exit opportunity. The stock had struggled below $130 for most of the past year before Tuesday’s breakout.
Danaher Pays Premium Price
Danaher shares moved lower on the acquisition news. The stock dropped 3.5% as shareholders digest the price tag.
The deal includes Masimo’s outstanding debt obligations. Total enterprise value reaches $9.9 billion when debt is factored into the equation.
Masimo carries a market capitalization of roughly $7 billion. Danaher weighs in at over $150 billion, making this a relatively manageable addition.
The transaction strengthens Danaher’s position in diagnostics and medical technology. Masimo will operate as an independent unit within the Diagnostics segment.
Contract research organizations have navigated choppy waters lately. Drug pricing uncertainty and potential tariff changes have created obstacles.
Academic and government research funding has softened. These headwinds make strategic consolidation more attractive for major players.
Legal Battle With Apple Continues
Masimo remains entangled in patent litigation with Apple. The dispute centers on pulse oximeter technology used in Apple Watch devices.
The legal fight has dragged on for an extended period. Danaher’s acquisition doesn’t appear contingent on resolving the Apple dispute.
The all-cash structure simplifies the transaction for Masimo shareholders. No stock swap or earn-out provisions complicate the math.
Shareholders will receive $180 per share upon closing. Regulatory reviews and standard closing conditions must clear first.
Neither company disclosed an expected completion timeline. Large acquisitions typically require several months for approvals.
Masimo’s technology portfolio proved attractive to Danaher’s growth strategy. Pulse oximetry has become standard equipment in healthcare settings worldwide.
The premium reflects Masimo’s market position and intellectual property. Medical device valuations have remained elevated despite broader market pressures.
Danaher’s diagnostics business gains immediate scale through the combination. The deal ranks among the larger medical device transactions in recent years.
Tuesday’s price action delivered windfall gains for Masimo shareholders. Anyone holding shares before the announcement captured the full premium overnight.
The acquisition follows Danaher’s pattern of strategic bolt-on deals. The company has built its empire through disciplined acquisitions in life sciences and diagnostics.
Masimo will maintain operational independence post-closing. This approach has worked well for previous Danaher acquisitions across multiple segments.
The $180 per share price represents Masimo’s highest valuation since early 2022. Shares traded well below current levels throughout 2024 and 2025.
