Danaher Corporation DHR has completed the acquisition of Masimo Corp. for $180 per share in cash. The transaction was valued at approximately $9.9 billion in total, including assumed debt and net of acquired cash.
Based in Irvine, CA, Masimo is engaged in developing and producing a wide array of industry-leading monitoring technologies, including innovative measurements, sensors, patient monitors, and automation and connectivity solutions. The company introduced Masimo SET Measure-through Motion and Low Perfusion pulse oximetry in 1995.
Acquisition Rationale of DHR
The latest buyout is in sync with Danaher’s policy of acquiring businesses to strengthen its business and expand market share. The integration of Masimo’s advanced sensor technologies, pulse oximetry solutions and AI-enabled patient-monitoring capabilities is expected to enhance the company’s diagnostics offerings. This acquisition will also enable DHR to provide more comprehensive solutions for acute-care settings, improving clinical decision-making and patient outcomes.
Masimo will operate as a standalone company within the Diagnostics segment, alongside Radiometer, Leica Biosystems, Cepheid and Beckman Coulter Diagnostics.
Masimo Impact Limited in Q2
Danaher maintained its previously issued second-quarter and full-year 2026 guidance, excluding any contribution from Masimo. The company does not expect Masimo to have a material impact on its second-quarter 2026 results. However, DHR plans to update its full-year guidance when it reports second-quarter earnings to reflect the acquisition's expected contribution.
DHR’s Zacks Rank & Price Performance
Danaher is benefiting from strong demand in its bioprocessing business, fueled by rising demand for consumables from pharmaceutical customers. Strength in the filtration business, driven by increased demand for products in the microelectronic end market, also bodes well.
In the past month, this Zacks Rank #3 (Hold) company’s shares gained 8.9% compared with the industry’s 3.6% growth.
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However, the company is plagued by weakness in the Diagnostics segment. An increase in the cost of sales may affect the margin performance.
Stocks to Consider
Some better-ranked companies from the same space are discussed below:
Alignment Healthcare, Inc. ALHC currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
ALHC delivered a trailing four-quarter average earnings surprise of 198.8%. In the past 30 days, the Zacks Consensus Estimate for Alignment Healthcare’s 2026 earnings has remained steady.
BrightSpring Health Services, Inc. BTSG currently sports a Zacks Rank of 1. BTSG delivered a trailing four-quarter average earnings surprise of 14.6%.
In the past 30 days, the Zacks Consensus Estimate for BrightSpring’s 2026 earnings has remained steady.
CVS Health Corporation CVS currently carries a Zacks Rank #2 (Buy). CVS delivered a trailing four-quarter average earnings surprise of 16.8%.
In the past 30 days, the Zacks Consensus Estimate for CVS Health’s 2026 earnings has increased 1.1%.
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See Stocks Now >>Danaher Corporation (DHR) : Free Stock Analysis Report
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Alignment Healthcare, Inc. (ALHC) : Free Stock Analysis Report
BrightSpring Health Services, Inc. (BTSG) : Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
