Sources: US Healthcare Manufacturer Danaher Is Nearing a Deal to Buy Medtech Company Masimo for ~$10B; Masimo Is in an IP Dispute with Apple over Apple Watch (Financial Times)

Why It Matters

The acquisition gives Danaher a foothold in the fast‑growing wearable health‑tech space and could affect the Apple‑Masimo patent fight, influencing market dynamics and shareholder value.

Key Takeaways

• Danaher aims to acquire Masimo for approx $10 billion
• Deal pending regulatory approval, expected Q2 close
• Masimo's pulse‑ox technology central to Apple Watch dispute
• Acquisition could strengthen Danaher's diagnostics and wearable market
• Apple‑Masimo IP case may influence valuation and integration

Pulse Analysis

Danaher Corporation, a diversified industrial and life‑science powerhouse, has signaled its intent to acquire Masimo Corp for roughly $10 billion in cash. The target, renowned for its pulse‑oximetry and non‑invasive monitoring solutions, complements Danaher’s Diagnostics and Life Sciences divisions, which already host a suite of analytical instruments and clinical chemistry platforms. By folding Masimo’s sensor expertise into its existing portfolio, Danaher aims to accelerate cross‑selling opportunities, broaden its addressable market in hospitals and point‑of‑care settings, and capture a larger share of the burgeoning digital health ecosystem.

The timing of the transaction coincides with Masimo’s ongoing intellectual‑property litigation against Apple, which alleges that the Apple Watch’s SpO₂ sensor infringes on Masimo patents. The dispute, filed in multiple jurisdictions, has drawn attention to the competitive overlap between consumer wearables and clinical‑grade monitoring devices. An acquisition by Danaher could provide Masimo with additional legal resources and bargaining power, potentially influencing settlement terms or licensing arrangements. Moreover, the integration of Masimo’s technology into Danaher’s broader product suite may create new pathways for Apple to negotiate access to proven sensor designs.

Regulatory clearance remains the final hurdle, with antitrust authorities expected to scrutinize the deal for potential concentration in the medical‑device market. If approved, the combined entity would command a formidable position across hospital equipment, remote patient monitoring, and emerging telehealth platforms. Investors are watching closely, as the merger could unlock synergies estimated in the high‑single‑digit percent range and drive earnings growth for Danaher’s shareholders. The outcome will also signal how traditional medtech firms can leverage acquisitions to compete with tech giants encroaching on health‑monitoring space.