Danaher’s $9.9 Billion Masimo Acquisition Signals Consolidation in Patient Monitoring Technology

Deal Structure and Strategic Rationale

Under the acquisition agreement, Danaher will integrate Masimo as a standalone business unit within its Diagnostics segment, preserving operational independence while leveraging Danaher’s distribution and operational infrastructure.[2] The transaction represents a premium valuation for Masimo, reflecting the strategic value of its core patient monitoring franchise and innovation pipeline.

Masimo’s flagship SET® pulse oximetry technology serves over 200 million patients annually globally, establishing the company as a market leader in non-invasive monitoring solutions.[2] This acquisition allows Danaher to strengthen its acute care portfolio and expand its diagnostics capabilities in an increasingly competitive healthcare technology landscape where integrated monitoring platforms command premium valuations.

Katie Szyman, Masimo’s Chief Executive Officer, emphasized that the merger will accelerate the company’s mission to improve patient monitoring solutions globally, while Michelle Brennan, Chairman of Masimo’s Board, characterized the partnership as providing significant shareholder value after the board evaluated various strategic alternatives.[2]

Financial Advisors and Transaction Timeline

Masimo retained a comprehensive advisory team for the transaction, including Centerview Partners LLC and Morgan Stanley & Co. LLC as financial advisors, Sullivan & Cromwell LLP and White & Case LLP as legal counsel, and Longacre Square Partners as strategy and communications advisor.[2] This multi-advisor approach reflects the complexity and scale of the transaction within the medical device M&A market.

Masimo will report its fourth quarter and full-year 2025 financial results on February 26, 2026, after market close, but will not hold an earnings conference call due to the pending transaction.[2]

Shareholder Litigation and Valuation Scrutiny

Multiple law firms have initiated shareholder investigations into the transaction, questioning whether Masimo’s Board conducted a fair process and whether the $180 per share consideration provides adequate value to shareholders.[1][3][5] These investigations are standard in large-scale M&A transactions and typically examine board fiduciary duties, process fairness, and deal pricing relative to comparable transactions and intrinsic valuation metrics.

The litigation activity reflects broader scrutiny in healthcare technology acquisitions, where valuation multiples and strategic premiums have become increasingly contested among institutional shareholders and activist investors focused on maximizing deal consideration.

Broader Market Context

The Danaher-Masimo transaction exemplifies consolidation trends in medical device and diagnostics, where larger conglomerates acquire specialized technology companies to build integrated platforms. This deal occurs within a healthcare M&A environment characterized by strategic buyer interest in patient monitoring, remote care, and acute care diagnostics—segments experiencing accelerated adoption driven by healthcare system digitalization and value-based care models.

Danaher’s acquisition strategy has historically focused on bolt-on acquisitions that complement existing business units while maintaining operational autonomy, a model that appears consistent with the Masimo integration approach outlined in the transaction announcement.