Danaher to Acquire Masimo for $9.9 Billion in Cash
Danaher Corporation will acquire Masimo Corporation for $9.9 billion in cash to expand its patient monitoring business. The deal is expected to enhance Danaher’s clinical diagnostics portfolio and drive revenue growth through cross-selling of monitoring devices.
1. Acquisition Details
Danaher Corporation has agreed to purchase Masimo Corporation for approximately $9.9 billion in an all-cash transaction. The boards of both companies have approved the deal, which is expected to close by year-end, subject to regulatory approvals and customary closing conditions.
2. Strategic Rationale
The acquisition aims to bolster Danaher’s patient monitoring segment by integrating Masimo’s innovative pulse oximetry and noninvasive monitoring technologies. This move is designed to create cross-selling opportunities across hospitals and outpatient settings, leveraging Danaher’s global sales network.
3. Financial Implications
Funding the transaction with cash on hand and committed debt facilities will modestly increase Danaher’s leverage ratio but is projected to be accretive to adjusted earnings per share within the first year. Management anticipates achieving cost synergies through streamlined R&D and manufacturing operations.