Danaher Acquires Masimo: Key Transaction Details
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 21 hours ago
0mins
Should l Buy DHR?
Source: Benzinga
- Transaction Background: The deal follows a proxy contest led by activist hedge fund Politan Capital Management, resulting in the removal of Masimo founder Joe Kiani as board chair, who subsequently stepped down as CEO but retains about a 5% stake, indicating significant governance changes.
- Valuation Metrics: The transaction is valued at approximately 18x estimated 2027 EBITDA, or 15x including expected annual synergies, reflecting Danaher's confidence in Masimo's future profitability and potential growth in the diagnostics sector.
- Financial Expectations: Danaher anticipates Masimo will generate over $530 million in EBITDA by 2027, with more than $125 million in annual cost synergies and over $50 million in annual revenue synergies expected by the fifth year post-acquisition, showcasing a strong financial outlook.
- Market Reaction: Danaher’s stock rose 0.55% to $207.50 in the latest trading session, indicating a positive market response to the acquisition, with analysts suggesting that the deal enhances Danaher’s portfolio of high-quality assets.
Trade with 70% Backtested Accuracy
Stop guessing "Should I Buy DHR?" and start using high-conviction signals backed by rigorous historical data.
Sign up today to access powerful investing tools and make smarter, data-driven decisions.
Analyst Views on DHR
Wall Street analysts forecast DHR stock price to rise
18 Analyst Rating
17 Buy
1 Hold
0 Sell
Strong Buy
Current: 208.560
Low
240.00
Averages
266.18
High
310.00
Current: 208.560
Low
240.00
Averages
266.18
High
310.00
About DHR
Danaher Corporation is a global life sciences and diagnostics innovator. The Company operates through three segments: Biotechnology, Life Sciences and Diagnostics. The Biotechnology segment includes the bioprocessing and discovery and medical businesses and offers a broad range of equipment, consumables and services that are primarily used by customers to advance and accelerate the research, development, manufacture and delivery of biological medicines. The Life Sciences segment offers a broad range of instruments, consumables, services and software that are primarily used by customers to study the basic building blocks of life, including deoxyribonucleic acid (DNA) and ribonucleic acid (RNA), nucleic acid, proteins, metabolites and cells. The Diagnostics segment offers clinical instruments, consumables, software and services that hospitals, physicians’ offices, reference laboratories and other critical care settings use to diagnose disease and make treatment decisions.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Valuation Challenges Intensify for Tech Stocks
- Tech Stock Sell-off: A wave of selling in technology shares is occurring as investors express uncertainty about their future value, particularly as price-to-earnings ratios shrink dramatically, which negatively impacts overall investment sentiment.
- Danaher-Masimo Acquisition Risks: Danaher is acquiring Masimo at nearly 25 times next year's earnings, despite the latter's inability to justify its multiple over the years, raising concerns that could adversely affect Danaher's stock performance.
- CrowdStrike-Microsoft Partnership: CrowdStrike's Falcon platform is now available on the Microsoft Marketplace, which could significantly boost revenue; however, its current P/E ratio of 85 has led to a tepid market reaction, reflecting investor anxiety over high valuations.
- ServiceNow Management Confidence Issues: Despite ServiceNow's announcement of a $5 billion stock buyback and intentions from executives to buy shares, the stock price still fell, indicating market skepticism about its growth prospects amid intensifying AI competition.
See More
Danaher Acquires Masimo: Key Transaction Details
- Transaction Background: The deal follows a proxy contest led by activist hedge fund Politan Capital Management, resulting in the removal of Masimo founder Joe Kiani as board chair, who subsequently stepped down as CEO but retains about a 5% stake, indicating significant governance changes.
- Valuation Metrics: The transaction is valued at approximately 18x estimated 2027 EBITDA, or 15x including expected annual synergies, reflecting Danaher's confidence in Masimo's future profitability and potential growth in the diagnostics sector.
- Financial Expectations: Danaher anticipates Masimo will generate over $530 million in EBITDA by 2027, with more than $125 million in annual cost synergies and over $50 million in annual revenue synergies expected by the fifth year post-acquisition, showcasing a strong financial outlook.
- Market Reaction: Danaher’s stock rose 0.55% to $207.50 in the latest trading session, indicating a positive market response to the acquisition, with analysts suggesting that the deal enhances Danaher’s portfolio of high-quality assets.
See More
Jim Cramer's Trust Portfolio Trading Update
- Capital One Increase: Acquiring 30 shares of Capital One Financial at approximately $208 each raises the weighting in Jim Cramer's Trust to 3.05% from 2.9%, increasing total shares to 580, indicating confidence in the company's growth potential despite risks from proposed interest rate caps.
- Danaher Reduction: Selling 200 shares of Danaher at around $207 each decreases the weighting from 2.1% to 1.05%, realizing a disappointing 9% loss, reflecting concerns over its acquisition of pulse oximetry leader Masimo and a preference for biotech-focused acquisitions.
- Texas Roadhouse Sale: Offloading 200 shares of Texas Roadhouse at about $189 each reduces the weighting to 0.95% from 1.9%, achieving an 8% gain, yet concerns over persistent beef inflation suggest potential earnings misses in upcoming reports.
- Strategic Portfolio Adjustment: By reducing positions in underperforming stocks, Jim Cramer's Trust aims to sidestep potential earnings shortfalls, demonstrating a cautious approach to earnings expectations in the current market climate.
See More
Review of Super Investors' Q4 Activities
- Investor Activities: The video reviews the stock buying and selling activities of 10 super investors, including Warren Buffett, Bill Ackman, Chuck Akre, Howard Marks, and Pat Dorsey, showcasing their investment strategies and market movements in Q4 2026.
- Market Insights: Stock prices referenced in the video are based on trading data from February 17, 2026, reflecting the market dynamics and investor decision-making at that time, helping viewers understand market trends.
- Investment Guidance: By analyzing these super investors' trades, viewers can gain insights into potential investment opportunities, particularly on how to select suitable stocks in the current economic environment.
- Subscription and Offers: The video encourages viewers to subscribe to the channel and click the special offer link below for more investment-related information and resources, enhancing their investment knowledge and decision-making capabilities.
See More
Review of Super Investors' Q4 Activities
- Investor Activities: The video reviews the stock buying and selling activities of 10 super investors, including Warren Buffett and Bill Ackman, in Q4 2026, providing deep insights into market trends.
- Recommended Stocks: The analyst team identified 10 best stocks to buy now, notably excluding Meta Platforms, indicating a cautious outlook on its future performance.
- Historical Returns: It highlights the performance of Netflix and Nvidia post-recommendation, with returns of 415,256% and 1,133,904% respectively, showcasing the potential gains from selected stocks.
- Investment Community: Viewers are encouraged to join an investing community built by individual investors, leveraging Stock Advisor's resources to achieve market-beating returns, emphasizing the platform's average return of 889%.
See More
U.S. Stocks Close Mixed, Apple Shares Rise on Product Launch News
- Market Performance Fluctuates: On Tuesday, the S&P 500 rose by 0.10%, the Dow Jones increased by 0.07%, while the Nasdaq 100 fell by 0.13%, indicating a mixed market recovery from early losses, with the Nasdaq 100 hitting a 2.75-month low, reflecting investor caution towards tech stocks.
- Apple Product Launch Boost: Apple shares surged over 3% after announcing a product launch on March 4, with several new devices expected in the coming weeks, which not only boosted Apple's market performance but also generated positive sentiment across the tech sector.
- Airline Stocks Rally: Airline stocks showed strong performance on Tuesday, led by a 6% increase in Southwest Airlines after UBS upgraded its rating from neutral to buy with a price target of $73, which not only enhanced the overall performance of airline stocks but also contributed to a more optimistic market outlook.
- Mixed Economic Data: The U.S. February NAHB housing market index unexpectedly fell to a 5-month low of 36, below the expected 38, while the February Empire manufacturing survey slightly declined to 7.1, indicating uncertainty in economic recovery, as the market remains focused on upcoming corporate earnings and economic news.
See More
Valuation Challenges Intensify for Tech Stocks
- Tech Stock Sell-off: A wave of selling in technology shares is occurring as investors express uncertainty about their future value, particularly as price-to-earnings ratios shrink dramatically, which negatively impacts overall investment sentiment.
- Danaher-Masimo Acquisition Risks: Danaher is acquiring Masimo at nearly 25 times next year's earnings, despite the latter's inability to justify its multiple over the years, raising concerns that could adversely affect Danaher's stock performance.
- CrowdStrike-Microsoft Partnership: CrowdStrike's Falcon platform is now available on the Microsoft Marketplace, which could significantly boost revenue; however, its current P/E ratio of 85 has led to a tepid market reaction, reflecting investor anxiety over high valuations.
- ServiceNow Management Confidence Issues: Despite ServiceNow's announcement of a $5 billion stock buyback and intentions from executives to buy shares, the stock price still fell, indicating market skepticism about its growth prospects amid intensifying AI competition.
See More
Danaher Acquires Masimo: Key Transaction Details
- Transaction Background: The deal follows a proxy contest led by activist hedge fund Politan Capital Management, resulting in the removal of Masimo founder Joe Kiani as board chair, who subsequently stepped down as CEO but retains about a 5% stake, indicating significant governance changes.
- Valuation Metrics: The transaction is valued at approximately 18x estimated 2027 EBITDA, or 15x including expected annual synergies, reflecting Danaher's confidence in Masimo's future profitability and potential growth in the diagnostics sector.
- Financial Expectations: Danaher anticipates Masimo will generate over $530 million in EBITDA by 2027, with more than $125 million in annual cost synergies and over $50 million in annual revenue synergies expected by the fifth year post-acquisition, showcasing a strong financial outlook.
- Market Reaction: Danaher’s stock rose 0.55% to $207.50 in the latest trading session, indicating a positive market response to the acquisition, with analysts suggesting that the deal enhances Danaher’s portfolio of high-quality assets.
See More
Jim Cramer's Trust Portfolio Trading Update
- Capital One Increase: Acquiring 30 shares of Capital One Financial at approximately $208 each raises the weighting in Jim Cramer's Trust to 3.05% from 2.9%, increasing total shares to 580, indicating confidence in the company's growth potential despite risks from proposed interest rate caps.
- Danaher Reduction: Selling 200 shares of Danaher at around $207 each decreases the weighting from 2.1% to 1.05%, realizing a disappointing 9% loss, reflecting concerns over its acquisition of pulse oximetry leader Masimo and a preference for biotech-focused acquisitions.
- Texas Roadhouse Sale: Offloading 200 shares of Texas Roadhouse at about $189 each reduces the weighting to 0.95% from 1.9%, achieving an 8% gain, yet concerns over persistent beef inflation suggest potential earnings misses in upcoming reports.
- Strategic Portfolio Adjustment: By reducing positions in underperforming stocks, Jim Cramer's Trust aims to sidestep potential earnings shortfalls, demonstrating a cautious approach to earnings expectations in the current market climate.
See More
Review of Super Investors' Q4 Activities
- Investor Activities: The video reviews the stock buying and selling activities of 10 super investors, including Warren Buffett, Bill Ackman, Chuck Akre, Howard Marks, and Pat Dorsey, showcasing their investment strategies and market movements in Q4 2026.
- Market Insights: Stock prices referenced in the video are based on trading data from February 17, 2026, reflecting the market dynamics and investor decision-making at that time, helping viewers understand market trends.
- Investment Guidance: By analyzing these super investors' trades, viewers can gain insights into potential investment opportunities, particularly on how to select suitable stocks in the current economic environment.
- Subscription and Offers: The video encourages viewers to subscribe to the channel and click the special offer link below for more investment-related information and resources, enhancing their investment knowledge and decision-making capabilities.
See More
Review of Super Investors' Q4 Activities
- Investor Activities: The video reviews the stock buying and selling activities of 10 super investors, including Warren Buffett and Bill Ackman, in Q4 2026, providing deep insights into market trends.
- Recommended Stocks: The analyst team identified 10 best stocks to buy now, notably excluding Meta Platforms, indicating a cautious outlook on its future performance.
- Historical Returns: It highlights the performance of Netflix and Nvidia post-recommendation, with returns of 415,256% and 1,133,904% respectively, showcasing the potential gains from selected stocks.
- Investment Community: Viewers are encouraged to join an investing community built by individual investors, leveraging Stock Advisor's resources to achieve market-beating returns, emphasizing the platform's average return of 889%.
See More
U.S. Stocks Close Mixed, Apple Shares Rise on Product Launch News
- Market Performance Fluctuates: On Tuesday, the S&P 500 rose by 0.10%, the Dow Jones increased by 0.07%, while the Nasdaq 100 fell by 0.13%, indicating a mixed market recovery from early losses, with the Nasdaq 100 hitting a 2.75-month low, reflecting investor caution towards tech stocks.
- Apple Product Launch Boost: Apple shares surged over 3% after announcing a product launch on March 4, with several new devices expected in the coming weeks, which not only boosted Apple's market performance but also generated positive sentiment across the tech sector.
- Airline Stocks Rally: Airline stocks showed strong performance on Tuesday, led by a 6% increase in Southwest Airlines after UBS upgraded its rating from neutral to buy with a price target of $73, which not only enhanced the overall performance of airline stocks but also contributed to a more optimistic market outlook.
- Mixed Economic Data: The U.S. February NAHB housing market index unexpectedly fell to a 5-month low of 36, below the expected 38, while the February Empire manufacturing survey slightly declined to 7.1, indicating uncertainty in economic recovery, as the market remains focused on upcoming corporate earnings and economic news.
See More
