Irvine’s Masimo Corp. said Wednesday that it signed a long-term, non-exclusive deal with the Netherlands’ Royal Philips Electronics NV in which it will supply Philips with patient monitoring technology.

Shares of Masimo were up 4% with a market value of $1.8 billion in midday New York trading. It was unclear why the shares were up.

Masimo makes various patient monitoring devices, including pulse oximeters, which are attached to a finger or toe and measures a patient's oxygen level.

The deal calls for Philips to use Masimo’s rainbow SET, which measures hemoglobin and other blood constituents, in its products.

Masimo said that it also expects to begin co-development projects with Philips, which it said should allow rainbow SET to be available in Philips’ monitoring devices worldwide.

The companies have a long history of working together. Masimo has provided its SET technology to Philips for some years.

But they have also battled in court – in 2009, Masimo and Respironics Inc., a Philips unit, settled a lawsuit related to blood monitoring technology.

And they also have an ongoing lawsuit over pulse oximetry technology, something that analyst Matt Dolan of Newport Beach's Roth Capital Partners LLC said was different than included in the deal announced Wednesday.

The rainbow deal "represents a constructive sign of commercial cooperation between both parties," Dolan said in a client note.