Danaher to Acquire Masimo for $9.9 Billion
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 10 hours ago
0mins
Should l Buy DHR?
Source: stocktwits
- Acquisition Overview: Danaher announced an all-cash acquisition of Masimo for approximately $9.9 billion, paying $180 per share, reflecting about 18 times Masimo's projected 2027 EBITDA, with the deal expected to close in the second half of 2026.
- Earnings Growth Expectations: Danaher anticipates the acquisition will add between $0.15 and $0.20 to adjusted earnings per share in the first full year post-closing, with contributions expected to rise to approximately $0.70 per share by year five, indicating significant long-term growth potential.
- Business Integration and Synergies: Masimo will operate as a standalone business within Danaher’s Diagnostics unit, with expectations of capturing over $125 million in annual cost efficiencies and more than $50 million in annual revenue synergies within five years, enhancing competitive positioning.
- Market Reaction and Investor Sentiment: Following the acquisition announcement, Danaher’s stock fell over 6%, while Masimo’s stock surged over 34% in premarket trading, reflecting a shift to extremely bullish sentiment around Masimo's future prospects.
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: 212.580
Low
240.00
Averages
266.18
High
310.00
Current: 212.580
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.
General Mills Lowers 2026 Outlook, Shares Drop
- General Mills Outlook Downgrade: General Mills has lowered its 2026 organic net sales forecast to a decline of 1.5% to 2%, with operating profit and adjusted EPS expected to fall by 16% to 20%, resulting in a 7% drop in shares, indicating market concerns about future growth.
- Southwest Airlines Stock Surge: Shares of Southwest Airlines rose over 6% after UBS upgraded its rating to buy, with analysts highlighting new initiatives like extra legroom and assigned seating that could attract more travelers, showcasing the company's proactive transformation in a competitive airline market.
- ZIM Integrated Shipping Services Surge: ZIM's shares surged 30% following the announcement that German-based Hapag-Lloyd will acquire ZIM for $4.2 billion, financed through cash and external funding, marking a significant consolidation in the shipping industry.
- Labcorp's Mixed Results: Labcorp reported a fourth-quarter EPS of $4.07, exceeding the $3.94 expected by analysts, yet shares fell over 3% due to concerns regarding the pace of organic revenue growth despite a positive earnings forecast.
See More
Danaher's Acquisition Plan Disappoints Market
- Acquisition Plan Disappointment: Danaher announced its agreement to acquire medtech company Masimo for over $9.6 billion at $180 per share, yet the market reacted negatively with a 3.5% drop in stock price, indicating investor concerns about the deal's viability.
- Valuation Risks: The total enterprise value of the deal is estimated at $9.9 billion, with a transaction multiple of 18 times the projected 2027 EBITDA, raising doubts about financial feasibility despite hopes to reduce it to 15 times through synergies.
- Poor Market Performance: Danaher's stock has declined over 10% in 2026, extending a five-year losing streak, which has eroded investor confidence in its growth prospects, particularly with the acquisition of Masimo in a new vertical.
- Strategic Transformation Challenges: Historically, Danaher has relied on acquisitions and divestitures for growth, but this entry into medical technology is seen as a departure from its core life sciences tools and diagnostics business, potentially complicating future M&A strategies.
See More
MASIMO STOCK SOARS 34.4% FOLLOWING DANAHER'S $9.9 BILLION ACQUISITION OFFER
- Market Reaction: Masi Moshare's shares jumped 34.4% following a significant announcement.
- Acquisition Deal: Danaher is set to acquire Coin in a deal valued at $9.9 billion.
See More
Danaher to Acquire Masimo for $9.9 Billion
- Acquisition Overview: Danaher announced an all-cash acquisition of Masimo for approximately $9.9 billion, paying $180 per share, reflecting about 18 times Masimo's projected 2027 EBITDA, with the deal expected to close in the second half of 2026.
- Earnings Growth Expectations: Danaher anticipates the acquisition will add between $0.15 and $0.20 to adjusted earnings per share in the first full year post-closing, with contributions expected to rise to approximately $0.70 per share by year five, indicating significant long-term growth potential.
- Business Integration and Synergies: Masimo will operate as a standalone business within Danaher’s Diagnostics unit, with expectations of capturing over $125 million in annual cost efficiencies and more than $50 million in annual revenue synergies within five years, enhancing competitive positioning.
- Market Reaction and Investor Sentiment: Following the acquisition announcement, Danaher’s stock fell over 6%, while Masimo’s stock surged over 34% in premarket trading, reflecting a shift to extremely bullish sentiment around Masimo's future prospects.
See More
HIVE Digital Technologies Reports Larger Than Expected Quarterly Losses
- Quarterly Losses: HIVE Digital Technologies reported a quarterly loss of $0.38 per share, significantly exceeding the analyst consensus estimate of a $0.07 loss, indicating substantial challenges in profitability that could undermine investor confidence.
- Sales Miss: The company's quarterly sales totaled $93.111 million, falling short of the analyst consensus estimate of $96.975 million, reflecting weak market demand that may lead to declining future performance.
- Stock Price Reaction: In pre-market trading, HIVE's shares fell by 2.3% to $2.16, indicating a negative investor reaction to the earnings report, which could impact the company's short-term financing capabilities.
- Overall Market Trend: U.S. stock futures were broadly lower, with Nasdaq 100 futures dropping over 150 points, reflecting a bearish market sentiment that may have a ripple effect on HIVE and other tech stocks.
See More
Warner Bros. Discovery and Paramount Skydance Deal Talks
- Stock Price Surge: Shares of Warner Bros. Discovery rose 2.4% and Paramount Skydance jumped nearly 4% after Netflix granted a seven-day waiver for deal talks, reflecting market optimism about a potential transaction between the two media giants.
- Acquisition Rumors: Health tech leader Masimo's shares surged over 33% following reports from The Wall Street Journal and Financial Times that it is nearing a $10 billion acquisition deal with Danaher at $180 per share, indicating strong market interest in the deal.
- Earnings Beat: DTE Energy Company saw its shares increase by 2% after reporting fourth-quarter and fiscal year 2025 earnings that exceeded expectations, although its 2026 guidance was at the lower end of forecasts, suggesting cautious sentiment about future performance.
- Investor Activity: Norwegian Cruise Line Holdings' stock rose 7.5% after reports indicated that Elliott Investment Management has acquired over a 10% stake and plans to advocate for changes to improve the company's performance, highlighting investor focus on its future direction.
See More
General Mills Lowers 2026 Outlook, Shares Drop
- General Mills Outlook Downgrade: General Mills has lowered its 2026 organic net sales forecast to a decline of 1.5% to 2%, with operating profit and adjusted EPS expected to fall by 16% to 20%, resulting in a 7% drop in shares, indicating market concerns about future growth.
- Southwest Airlines Stock Surge: Shares of Southwest Airlines rose over 6% after UBS upgraded its rating to buy, with analysts highlighting new initiatives like extra legroom and assigned seating that could attract more travelers, showcasing the company's proactive transformation in a competitive airline market.
- ZIM Integrated Shipping Services Surge: ZIM's shares surged 30% following the announcement that German-based Hapag-Lloyd will acquire ZIM for $4.2 billion, financed through cash and external funding, marking a significant consolidation in the shipping industry.
- Labcorp's Mixed Results: Labcorp reported a fourth-quarter EPS of $4.07, exceeding the $3.94 expected by analysts, yet shares fell over 3% due to concerns regarding the pace of organic revenue growth despite a positive earnings forecast.
See More
Danaher's Acquisition Plan Disappoints Market
- Acquisition Plan Disappointment: Danaher announced its agreement to acquire medtech company Masimo for over $9.6 billion at $180 per share, yet the market reacted negatively with a 3.5% drop in stock price, indicating investor concerns about the deal's viability.
- Valuation Risks: The total enterprise value of the deal is estimated at $9.9 billion, with a transaction multiple of 18 times the projected 2027 EBITDA, raising doubts about financial feasibility despite hopes to reduce it to 15 times through synergies.
- Poor Market Performance: Danaher's stock has declined over 10% in 2026, extending a five-year losing streak, which has eroded investor confidence in its growth prospects, particularly with the acquisition of Masimo in a new vertical.
- Strategic Transformation Challenges: Historically, Danaher has relied on acquisitions and divestitures for growth, but this entry into medical technology is seen as a departure from its core life sciences tools and diagnostics business, potentially complicating future M&A strategies.
See More
MASIMO STOCK SOARS 34.4% FOLLOWING DANAHER'S $9.9 BILLION ACQUISITION OFFER
- Market Reaction: Masi Moshare's shares jumped 34.4% following a significant announcement.
- Acquisition Deal: Danaher is set to acquire Coin in a deal valued at $9.9 billion.
See More
Danaher to Acquire Masimo for $9.9 Billion
- Acquisition Overview: Danaher announced an all-cash acquisition of Masimo for approximately $9.9 billion, paying $180 per share, reflecting about 18 times Masimo's projected 2027 EBITDA, with the deal expected to close in the second half of 2026.
- Earnings Growth Expectations: Danaher anticipates the acquisition will add between $0.15 and $0.20 to adjusted earnings per share in the first full year post-closing, with contributions expected to rise to approximately $0.70 per share by year five, indicating significant long-term growth potential.
- Business Integration and Synergies: Masimo will operate as a standalone business within Danaher’s Diagnostics unit, with expectations of capturing over $125 million in annual cost efficiencies and more than $50 million in annual revenue synergies within five years, enhancing competitive positioning.
- Market Reaction and Investor Sentiment: Following the acquisition announcement, Danaher’s stock fell over 6%, while Masimo’s stock surged over 34% in premarket trading, reflecting a shift to extremely bullish sentiment around Masimo's future prospects.
See More
HIVE Digital Technologies Reports Larger Than Expected Quarterly Losses
- Quarterly Losses: HIVE Digital Technologies reported a quarterly loss of $0.38 per share, significantly exceeding the analyst consensus estimate of a $0.07 loss, indicating substantial challenges in profitability that could undermine investor confidence.
- Sales Miss: The company's quarterly sales totaled $93.111 million, falling short of the analyst consensus estimate of $96.975 million, reflecting weak market demand that may lead to declining future performance.
- Stock Price Reaction: In pre-market trading, HIVE's shares fell by 2.3% to $2.16, indicating a negative investor reaction to the earnings report, which could impact the company's short-term financing capabilities.
- Overall Market Trend: U.S. stock futures were broadly lower, with Nasdaq 100 futures dropping over 150 points, reflecting a bearish market sentiment that may have a ripple effect on HIVE and other tech stocks.
See More
Warner Bros. Discovery and Paramount Skydance Deal Talks
- Stock Price Surge: Shares of Warner Bros. Discovery rose 2.4% and Paramount Skydance jumped nearly 4% after Netflix granted a seven-day waiver for deal talks, reflecting market optimism about a potential transaction between the two media giants.
- Acquisition Rumors: Health tech leader Masimo's shares surged over 33% following reports from The Wall Street Journal and Financial Times that it is nearing a $10 billion acquisition deal with Danaher at $180 per share, indicating strong market interest in the deal.
- Earnings Beat: DTE Energy Company saw its shares increase by 2% after reporting fourth-quarter and fiscal year 2025 earnings that exceeded expectations, although its 2026 guidance was at the lower end of forecasts, suggesting cautious sentiment about future performance.
- Investor Activity: Norwegian Cruise Line Holdings' stock rose 7.5% after reports indicated that Elliott Investment Management has acquired over a 10% stake and plans to advocate for changes to improve the company's performance, highlighting investor focus on its future direction.
See More
