Danaher Corporation is nearing a roughly $10 billion deal to acquire Masimo Corporation, a medical technology firm specializing in pulse oximetry, according to reports from the Financial Times and multiple financial news outlets. A transaction could be announced as early as Tuesday, pending any last-minute complications.
The potential acquisition would represent the largest medtech deal of 2026 to date, significantly expanding Danaher’s presence in the patient monitoring sector. The deal values Masimo at a 43% premium over its market capitalization as of Friday’s close, which stood at approximately $6.99 billion, according to Fintool.com. Masimo’s shares closed at $130.15 on Friday, near 52-week lows, after a 33% decline from its year-high of $194.88.
Danaher, a life sciences firm known for its acquisition-driven growth strategy, signaled its readiness for a “sizable” merger or acquisition just weeks ago during its fourth-quarter 2025 earnings call. CEO Rainer Blair stated the company had seen “valuations moving in the right direction” and that “interest rates have moderated a little bit,” priming its balance sheet for potential deals. Danaher reported fourth-quarter 2025 sales of $6.84 billion, a 4.5% increase year-over-year.
The acquisition comes after significant governance changes at Masimo, spurred by activist investors led by Politan Capital Management. A proxy contest in 2025 resulted in the removal of founder Joe Kiani as board chair, and his subsequent resignation as chief executive. Kiani, however, retains approximately a 5% stake in the company, while Politan Capital Management holds close to 9% ownership after securing four board seats.
Masimo has faced recent challenges, including a long-running patent dispute with Apple related to smartwatch technology. The company’s performance has been under pressure, with its stock declining 50% over the past five years. A $1 billion acquisition of Sound United, an audio brands company, also drew criticism from activist investors who argued it deviated from Masimo’s core healthcare focus. Masimo divested its wearables business in 2025 for $350 million, a substantial markdown from the original purchase price.
Danaher’s market capitalization is approximately $150 billion, making the $10 billion deal represent about 6.7% of its total value. The acquisition of Masimo would add pulse oximetry technology to Danaher’s portfolio, a key component in patient monitoring and critical care.
