Danaher Acquires Masimo
Danaher Acquires Masimo at $180 per share, a $9.9 billion deal expected to be accretive to adjusted diluted EPS and to shift capital structure.
KEY TAKEAWAYS
- Danaher agreed to acquire Masimo for $180 per share, valuing the deal at $9.9 billion EV.
- Transaction was expected to be accretive to adjusted diluted EPS by $0.15-$0.20 in the first full year.
- Funded with cash and debt; Danaher forecasts >$125 million cost and >$50 million revenue synergies by year five.
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Danaher Corporation (DHR) said in a press release on Feb. 17, 2026, that it will acquire Masimo Corporation (MASI) under a definitive agreement designed to strengthen its Diagnostics segment and be accretive to adjusted diluted earnings per share (EPS).
Deal Terms, Financing, and Financial Impact
Danaher will pay $180 per share in cash for all Masimo common stock, valuing the transaction at a $9.9 billion enterprise value, which includes assumed debt and excludes acquired cash. The company plans to fund the acquisition with cash on hand and debt proceeds. Citi served as Danaher’s financial advisor, and Kirkland & Ellis LLP provided legal counsel. Management described the funding as a mix of available liquidity and capital markets access, avoiding a separate equity issuance.
The price implies an 18 times multiple of Masimo’s estimated 2027 EBITDA (earnings before interest, taxes, depreciation, and amortization) and about 15 times when factoring in Danaher’s projected annual synergies. Danaher expects the deal to add $0.15 to $0.20 to adjusted diluted EPS in the first full year and about $0.70 by the fifth year. These non-GAAP figures exclude amortization, purchase accounting, and transaction costs. The company cited these multiples and accretion as evidence of near-term earnings improvement and longer-term growth from synergies.
Strategic Fit, Growth Prospects, and Approvals
Masimo will operate as a standalone business within Danaher’s Diagnostics segment alongside Radiometer, Leica Biosystems, Cepheid, and Beckman Coulter Diagnostics. Danaher’s president and CEO, Rainer M. Blair, said, "We've followed this innovative company for many years and see it as an exceptional strategic fit for Danaher."
Masimo is a leader in pulse oximetry and patient-monitoring solutions. Danaher expects the standalone business to achieve high-single-digit core revenue growth over the long term and projects Masimo will generate more than $530 million of EBITDA in 2027 under its ownership. The company also forecasts annual cost synergies exceeding $125 million and revenue synergies above $50 million by the fifth full year after closing. Danaher plans to expand margins and convert the purchase price into earnings gains through organic growth and these synergies.
The transaction received unanimous approval from both companies’ boards and remains subject to customary closing conditions, including regulatory clearances and Masimo shareholder approval. The companies expect to close in the second half of 2026 and will file and mail definitive proxy materials before the shareholder vote. They noted that timely shareholder approval and the possibility of competing offers could affect the timeline.
