Danaher Nears $10 Billion Acquisition of Medical Device Maker Masimo

Danaher Nears $10 Billion Acquisition of Medical Device Maker Masimo

Danaher Corporation is closing in on a deal to acquire medical device manufacturer Masimo in a transaction valued at nearly $10 billion, according to people familiar with the matter, marking one of the largest healthcare technology acquisitions as the sector consolidates around patient monitoring and connected care platforms.

The deal, which could be announced in the coming weeks if negotiations conclude successfully, would give Danaher control of Masimo's portfolio of patient monitoring systems and its growing hospital technology business. For finance chiefs watching the healthcare equipment sector, the transaction signals continued appetite for assets that combine hardware with recurring software and data revenue streams—a model that has become increasingly attractive as hospitals digitize operations.

Danaher, a Washington D.C.-based conglomerate with a market capitalization exceeding $150 billion, has built its reputation on acquiring specialized industrial and life sciences companies and applying its operational playbook to improve margins. The company's life sciences segment already includes brands like Beckman Coulter and Cepheid, giving it deep relationships with hospital procurement departments and laboratory directors.

Masimo, based in Irvine, California, is best known for its pulse oximetry technology and patient monitoring devices that have become standard equipment in hospitals and surgical centers. The company has been expanding beyond its core monitoring business into hospital automation and home health monitoring, areas that have attracted investor interest as healthcare delivery shifts outside traditional hospital walls.

The near-$10 billion price tag would represent a significant premium to Masimo's recent trading levels, though the exact terms and structure of the deal remain under negotiation. For Danaher's CFO, the acquisition would need to clear the company's disciplined return thresholds while potentially requiring debt financing in a higher interest rate environment than the company faced during its previous major acquisitions.

The timing is notable. Medical device valuations have compressed over the past two years as investors reassessed growth projections and interest rates climbed, creating what strategic buyers view as attractive entry points for assets with defensible market positions. Masimo's recurring revenue from consumables and service contracts—the replacement sensors and maintenance agreements that accompany its monitoring equipment—would fit Danaher's preference for businesses with predictable cash flows.

The deal would also consolidate market share in patient monitoring at a time when hospitals are under pressure to reduce costs while improving outcomes. Finance executives at health systems have increasingly focused on total cost of ownership rather than upfront equipment prices, favoring vendors that can demonstrate return on investment through reduced complications or shorter hospital stays.

Neither Danaher nor Masimo has commented publicly on the negotiations, and there is no guarantee the talks will result in a transaction. The companies face potential regulatory scrutiny given their combined market position in certain hospital equipment categories, though antitrust concerns in the medical device sector have typically focused on narrower product overlaps than this deal would present.

For CFOs tracking M&A activity, the transaction would test whether large-scale healthcare deals can still clear financing and regulatory hurdles in the current environment—and whether the strategic rationale for consolidation outweighs the execution risks that have plagued some recent megadeals.