Danaher (NYSE: DHR) is acquiring Masimo (NASDAQ: MASI) for $9.9 billion in an all-cash deal that values the medical technology company at $180 per share. The transaction, announced February 17, 2026, represents a nearly 40% premium over Masimo’s closing price on Friday, February 13, 2026.
What Masimo Brings to the Table
Masimo specializes in pulse oximetry and patient monitoring technology, generating $2.18 billion in revenue over the trailing 12 months. The company reported $371.5 million in revenue for Q3 2025, with non-GAAP EPS of $1.32, up 38% year-over-year. Masimo recently streamlined operations by selling its Sound United consumer audio division, allowing management to refocus on core medical device business.
Strategic Fit for Danaher
This acquisition follows Danaher’s playbook of adding high-quality diagnostics and life sciences assets. With $24.57 billion in trailing revenue and $7.14 billion in EBITDA, Danaher has the financial capacity to absorb this deal, which represents approximately 6.8% of its $145.88 billion market cap. Management expects the transaction to be accretive to earnings, with significant synergies anticipated.
Market Reaction Tells the Story
Masimo shares jumped 30.27% over the past week to $174.69, approaching the deal price. Meanwhile, Danaher shares dropped 6.09% over the same period to $206.36, reflecting investor concerns about dilution and integration costs. The deal requires Masimo shareholder approval and regulatory clearance, with closing expected in the second half of 2026.
Danaher is expanding its medical device footprint with this acquisition. Masimo shareholders will receive $180 per share in cash, representing a nearly 40% premium over the February 13, 2026, closing price, pending deal approval and regulatory clearance.
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