Danaher Corp. (NYSE:DHR) is reportedly nearing a roughly $9.9 billion acquisition of Masimo Corp. (NASDAQ:MASI), a move that follows significant governance changes at the medical device maker driven by activist investors.
A transaction for the California-based Masimo could be announced as early as Tuesday, the Financial Times reported, provided there are no last-minute complications, according to people familiar with the matter.
The deal represents a notable premium to Masimo’s nearly $7 billion market capitalization as of Friday’s close.
The potential deal comes two years after activist hedge fund Politan Capital Management led a proxy contest that resulted in the removal of founder Joe Kiani as board chair.
Kiani subsequently stepped down as chief executive but retains about a 5% stake in the company. Politan, founded by Quentin Koffey, holds close to 9% ownership after securing four board seats.
The FT report highlighted that Danaher has built its growth strategy on acquisitions over the past 25 years.
Patent Dispute And Strategic Missteps
Masimo has also been engaged in a long-running patent dispute with Apple Inc. (NASDAQ:AAPL) related to smartwatch technology.
Masimo’s performance has faced pressure in recent years. Its shares have declined 50% over five years, and challenges intensified following its $1 billion acquisition of Sound United, which owns audio brands.
Activist investors argued the move diverged from Masimo’s core healthcare focus.
In 2025, Masimo divested the wearables business for $350 million, a steep markdown from its original purchase price.
During its Investor Day in December 2025, Masimo’s management projected a 7%–10% revenue CAGR through 2028, with operating margins reaching about 30%.
Danaher Financial Performance And 2026 Guidance
Danaher’s stock, which surged during the COVID-19 pandemic, has since fallen 28% from its September 2021 peak, leaving it with a market capitalization of about $150 billion.
Danaher reported fourth-quarter 2025 sales of $6.84 billion, up 4.5% year-over-year, beating the consensus of $6.81 billion.
The company expects fiscal 2026 adjusted earnings of $8.35-$8.50 per share compared to the consensus of $8.42.
Masimo Earnings Preview And 2025 Outlook
Masimo is scheduled to release its fourth-quarter earnings on 26 February.
In January, Masimo released preliminary fourth-quarter revenue of around $411 million compared to the consensus of $407.58 million. The company sees fiscal 2025 sales of approximately $1.523 billion.
Masimo expects adjusted earnings of $1.54 per share, including the impact of new tariffs, for the quarter. The company reported preliminary fiscal 2025 earnings of at least $5.55 per share, versus the consensus $5.48.
DHR Price Action: Danaher shares were down 5.22% at $201.48 during premarket trading on Tuesday, according to Benzinga Pro data. Masimo shares were up 34.51% at $175.06.
Photo by T. Schneider via Shutterstock
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