Danaher Corporation has agreed to acquire Masimo in a cash deal worth $9.9bn in an effort to broaden its diagnostics business in the telehealth space.
Under the deal, which is valued at a price per share of $180, Danaher said that Masimo will become a standalone business unit and brand within its diagnostics unit, operating autonomously while strengthening the life science conglomerate’s offering in acute care settings. Pending customary closing conditions, the transaction is expected to complete in H2 2026.
Discover B2B Marketing That Performs
Combine business intelligence and editorial excellence to reach engaged professionals across 36 leading media platforms.
In 2025, Danaher’s diagnostics business achieved revenue of $9.94bn out of its $24.57bn total financial performance. By acquiring Masimo, Danaher broadens its diagnostics portfolio in the telehealth space with the inheritance of Masimo’s Signal Extraction Technology (SET) pulse oximetry system, among other products.
The deal’s announcement ahead of market open prompted Masimo’s shares on the Nasdaq stock exchange to rise by over 34% to $175 per share at market open on 17 February, up from $130.15 previously. Masimo has a market cap of $6.99bn.
Commenting on the deal, Danaher CEO Rainer Blair said: “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.
“With the Danaher Business System and our global scale, we see opportunities to expand Masimo’s reach and continue improving outcomes for patients, particularly those in acute care settings.”
US Tariffs are shifting - will you react or anticipate?
Don’t let policy changes catch you off guard. Stay proactive with real-time data and expert analysis.
By GlobalDataThe global market for pulse oximetry systems, which are medical devices used to measure oxygen saturation levels in the blood and heart rate, is projected to reach a valuation of $2.1bn in 2034, as per GlobalData analysis.
According to a GlobalData market model, Masimo held a 23.1% share of the US pulse oximetry systems market in 2025, with ICU Medical its closest competitor with an 11.3% share. Globally, Masimo’s share in this market was 21.3% in 2025, ahead of Philips, its next closest competitor, at 13.3%.
According to Dr Andrew Thompson, director of therapy research and analysis in medical devices for GlobalData, internal tracking indicates that Danaher has been “eyeing up” the telehealth space in recent years.
Thompson goes on to highlight that Masimo has “about $1.4bn” in healthcare revenue, including veterinary, and the rest in consumer, with the segment growing by “about 9%”.
Masimo’s sale punctuates a strenuous period for the company in which it has been embroiled in a slew of lawsuits with Apple and, by extension, the US Customs and Border Protection (CBP) agency.
Reflecting on Masimo’s oximetry system’s value proposition, Thompson continued: “Masimo won a patent infringement case against Apple, over blood oxygen meters, which fits into the burgeoning ‘wellness’ wearable medtech space.”
In November 2025, a California court ordered Apple to pay Masimo $634m in damages in relation to patent infringement.
Of the Danaher deal, Thompson adds that the valuation is high, meaning there should be “no problem” in getting this deal past shareholders, and that it’s synergistic, so Danaher “aren’t taking out a competitor”.
Beyond its lawsuit saga with Apple, Masimo also dealt with the fallout of its $1bn acquisition of consumer-grade audio company Sound United in 2022. The deal sparked rebellion among the company’s shareholders. Led by New York-based activist investor Politan Capital, the fracas culminated in the ousting of Masimo’s founder and CEO Joe Kiani from the board.
