Danaher Agrees to $10 Billion Acquisition of Medical Device Maker Masimo

Danaher Corporation has struck a deal to acquire Masimo Corporation, the medical device manufacturer, for approximately $10 billion, marking one of the largest healthcare technology transactions in recent months and signaling continued consolidation in the medical equipment sector.

The acquisition brings together Danaher's life sciences and diagnostics portfolio with Masimo's patient monitoring and sensor technologies, a combination that could reshape how hospitals and healthcare facilities approach continuous patient monitoring and data integration. For finance leaders in healthcare and adjacent industries, the deal represents a significant bet on the convergence of medical devices with data analytics capabilities—a trend that's been reshaping capital allocation priorities across the sector.

The transaction comes as medical device companies face mounting pressure to demonstrate how their products integrate into broader digital health ecosystems. Masimo, known primarily for its pulse oximetry and patient monitoring systems, has been expanding beyond its core hardware business into software and remote monitoring capabilities. That strategic shift appears to have made it an attractive target for Danaher, which has been methodically building out its healthcare technology platform through a series of acquisitions over the past several years.

For CFOs watching this space, the deal's structure and valuation will be closely scrutinized as a benchmark for how the market is pricing medical device assets in an environment where regulatory pathways remain complex and reimbursement models continue to evolve. The $10 billion price tag suggests Danaher sees significant value in Masimo's recurring revenue streams from consumables and software subscriptions—the kind of predictable cash flows that finance teams increasingly prize in capital-intensive healthcare businesses.

The acquisition also raises questions about integration complexity. Medical device companies operate under stringent regulatory oversight, and combining two organizations with separate quality management systems, regulatory filings, and compliance frameworks presents operational challenges that will test Danaher's integration playbook. Finance leaders who've lived through similar deals know that the "synergies" promised in press releases often take longer to materialize than the integration costs take to arrive.

What makes this particularly interesting is the timing. Healthcare M&A has been relatively quiet compared to the frenzied activity in other sectors, partly due to regulatory uncertainty and partly due to valuation gaps between buyers and sellers. A deal of this size suggests either that Danaher sees a window of opportunity that others are missing, or that Masimo's board concluded that going it alone had become less attractive than it appeared a year ago.

The transaction is expected to close subject to regulatory approvals and customary closing conditions, though no specific timeline was disclosed. For finance teams in the medical device sector, the deal will likely trigger fresh conversations with boards about strategic positioning—whether to build, buy, or prepare to be bought.