Danaher's Acquisition Plan Disappoints Market
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 6 hours ago
0mins
Should l Buy MASI?
Source: CNBC
- 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.
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Analyst Views on MASI
Wall Street analysts forecast MASI stock price to rise
6 Analyst Rating
4 Buy
2 Hold
0 Sell
Moderate Buy
Current: 130.150
Low
162.00
Averages
188.40
High
210.00
Current: 130.150
Low
162.00
Averages
188.40
High
210.00
About MASI
Masimo Corporation is a global medical technology company that develops and produces a wide range of monitoring technologies, including measurements, sensors, patient monitors, automation and connectivity solutions. The Company’s healthcare products and patient monitoring solutions generally incorporate a monitor or circuit board, proprietary single-patient use or reusable sensors, software and/or cables. It primarily sells its healthcare products to hospitals, emergency medical service providers, home care providers, physician offices, veterinarians, long-term care facilities. Its measurement technologies include Measure-through Motion and Low Perfusion pulse oximetry, known as Masimo Signal Extraction Technology (SET) pulse oximetry, and advanced rainbow Pulse CO-Oximetry parameters such as noninvasive hemoglobin (SpHb), alongside many other modalities, including brain function monitoring, hemodynamic monitoring, regional oximetry, capnography and gas monitoring, and others.
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.
Investor Rights Law Firm Investigates Multiple Companies for Potential Violations
- Legal Investigation Launched: Halper Sadeh LLC is investigating Masimo Corporation for potential violations of federal securities laws due to its sale to Danaher Corporation for $180.00 per share in cash, which could impact shareholder rights and transaction terms if substantiated.
- Shareholder Rights Protection: The law firm encourages shareholders of Masimo and Kennedy-Wilson Holdings to discuss their rights and options, particularly as the latter is being sold for $10.90 per share in cash to a consortium led by CEO William McMorrow, which may limit competing offers.
- Merger Transactions Under Review: The mergers involving VerifyMe, Inc. and Bakkt Holdings, Inc. are also under investigation, with Halper Sadeh LLC potentially seeking increased compensation and additional disclosures to ensure shareholders' legal rights are upheld.
- Global Investor Support: Halper Sadeh LLC represents investors worldwide, focusing on combating securities fraud and corporate misconduct, having successfully recovered millions for defrauded investors in the past, demonstrating its significant influence in protecting investor rights.
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- Nasdaq Underperformance: While broader equity indices were largely flat, the tech-heavy Nasdaq 100 slipped 0.3%, indicating a lack of confidence in the tech sector that may influence future investment decisions.
- Airline Stocks Rally: Airbnb Inc. (NASDAQ:ABNB) added 3.7%, extending last week's post-earnings momentum, while Southwest Airlines Co. (NYSE:LUV) jumped over 6% following analyst upgrades, suggesting a positive outlook for the airline industry's recovery.
- Commodity Market Decline: Following Iran's foreign minister's statement on reaching key principles with the U.S., crude oil fell 1.3% to $62 per barrel, while gold and silver dropped 2.5% and nearly 6%, respectively, indicating market reactions to geopolitical risks.
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Investigation Alerts for Multiple Company Mergers
- Masimo Merger Investigation: Masimo Corporation is set to be acquired by Danaher for $180.00 per share, totaling $9.9 billion, with investigations focusing on whether the board breached fiduciary duties by failing to ensure a fair process, potentially impacting shareholder rights.
- IHS Towers Acquisition Concerns: IHS Towers will be acquired by MTN Group for $8.50 per share, valuing the company at approximately $6.2 billion, with investigations into whether the board violated fiduciary duties by not ensuring a fair transaction for shareholders.
- VerifyMe Merger Review: VerifyMe will be acquired by Open World, allowing shareholders to retain a 10% stake post-merger, with investigations examining whether the board failed to conduct a fair process, which could affect shareholder interests.
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General Mills Lowers 2026 Outlook, Shares Drop
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- 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.
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- 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.
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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
Investor Rights Law Firm Investigates Multiple Companies for Potential Violations
- Legal Investigation Launched: Halper Sadeh LLC is investigating Masimo Corporation for potential violations of federal securities laws due to its sale to Danaher Corporation for $180.00 per share in cash, which could impact shareholder rights and transaction terms if substantiated.
- Shareholder Rights Protection: The law firm encourages shareholders of Masimo and Kennedy-Wilson Holdings to discuss their rights and options, particularly as the latter is being sold for $10.90 per share in cash to a consortium led by CEO William McMorrow, which may limit competing offers.
- Merger Transactions Under Review: The mergers involving VerifyMe, Inc. and Bakkt Holdings, Inc. are also under investigation, with Halper Sadeh LLC potentially seeking increased compensation and additional disclosures to ensure shareholders' legal rights are upheld.
- Global Investor Support: Halper Sadeh LLC represents investors worldwide, focusing on combating securities fraud and corporate misconduct, having successfully recovered millions for defrauded investors in the past, demonstrating its significant influence in protecting investor rights.
See More
Wall Street Opens Under AI Disruption Fears
- Tech Stocks Decline: The iShares Expanded Tech-Software Sector ETF (NYSE:IGV) fell over 2.7% in midday New York trading, marking its 11th decline in the past 15 sessions and pushing year-to-date losses to nearly 25%, reflecting ongoing investor concerns over potential AI-driven market disruptions.
- Nasdaq Underperformance: While broader equity indices were largely flat, the tech-heavy Nasdaq 100 slipped 0.3%, indicating a lack of confidence in the tech sector that may influence future investment decisions.
- Airline Stocks Rally: Airbnb Inc. (NASDAQ:ABNB) added 3.7%, extending last week's post-earnings momentum, while Southwest Airlines Co. (NYSE:LUV) jumped over 6% following analyst upgrades, suggesting a positive outlook for the airline industry's recovery.
- Commodity Market Decline: Following Iran's foreign minister's statement on reaching key principles with the U.S., crude oil fell 1.3% to $62 per barrel, while gold and silver dropped 2.5% and nearly 6%, respectively, indicating market reactions to geopolitical risks.
See More
Investigation Alerts for Multiple Company Mergers
- Masimo Merger Investigation: Masimo Corporation is set to be acquired by Danaher for $180.00 per share, totaling $9.9 billion, with investigations focusing on whether the board breached fiduciary duties by failing to ensure a fair process, potentially impacting shareholder rights.
- IHS Towers Acquisition Concerns: IHS Towers will be acquired by MTN Group for $8.50 per share, valuing the company at approximately $6.2 billion, with investigations into whether the board violated fiduciary duties by not ensuring a fair transaction for shareholders.
- VerifyMe Merger Review: VerifyMe will be acquired by Open World, allowing shareholders to retain a 10% stake post-merger, with investigations examining whether the board failed to conduct a fair process, which could affect shareholder interests.
- Great Lakes Acquisition Investigation: Great Lakes will be acquired by Saltchuk Resources for $17.00 per share, with a total transaction value of about $1.5 billion, and investigations looking into whether the board breached fiduciary duties by not ensuring a fair process, potentially impacting shareholder rights.
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
