Feb 17 (Reuters) – Danaher will acquire pulse oximeter maker Masimo in a $9.9 billion deal, as the life science firm looks to bulk up its diagnostics portfolio.
The companies said on Tuesday that Danaher will pay $180 per share to buy Masimo. The offer represents a premium of 38.3% to Masimo’s last close.
This is Danaher’s biggest deal since its $5.7 billion purchase of protein consumables maker Abcam in 2023.
Life science firms have been grappling with uncertainty around drug pricing regulations in the U.S., potential tariff policies and softer academic and government research funding.
Acquiring Masimo would allow Danaher, which provides tools and technologies that help pharmaceutical companies develop and make drugs, to expand into patient-monitoring products such as oximeters.
Masimo’s non-invasive pulse oximeters will complement Danaher’s invasive Radiometer blood analyzer devices.
Shares of Masimo, which has been in a long legal battle with iPhone maker Apple over patents, rose 34.3% to $174.89 in premarket trading, while Danaher’s stock fell 6.1%.
A federal jury in California ordered Apple to pay Masimo $634 million for infringing the patent covering blood-oxygen reading technology in November.
Masimo recently transformed itself into a “pure-play” med-tech firm after selling its Sound United unit, which held audio brands Denon and Marantz, to Samsung’s Harman last year for $350 million.
Danaher and Masimo expect the deal to close by the second half of 2026.
Masimo is expected to add to Danaher’s adjusted diluted net earnings per common share by $0.15 to $0.20 in the first full year and about $0.70 in the fifth full year following completion of the acquisition.
Masimo has a market capitalization of about $7 billion, while Danaher is valued at over $150 billion, according to Reuters calculations.
(Reporting by Gnaneshwar Rajan and Christy Santhosh in Bengaluru; Editing by Mrigank Dhaniwala and Shinjini Ganguli)