Danaher Corp.’s $9.9 billion buyout of Masimo Corp. closes the chapter on one of Orange County’s most well-known healthcare companies.
Masimo’s common stock stopped trading on the Nasdaq on the day the deal closed on June 10, ending the company’s nearly two-decade run as a publicly traded firm.
A few days later, Katie Szyman announced that she’d be stepping down as chief executive of Masimo after a year in the role.
“I am pleased to share—albeit with bittersweet emotions—that I have decided to step down from the CEO role at Masimo,” Szyman wrote in a LinkedIn post. “Leading Masimo has been an incredible privilege, and I am very proud of the growth and momentum we achieved together.”
Szyman served as a senior advisor to Danaher throughout the acquisition process, according to her profile.
Taking over the now acquired unit is Julie Sawyer Montgomery, executive vice president of Danaher’s diagnostics segment, which comprises six companies, including Brea-based Beckman Coulter.
The close ends a storied era for Masimo, which was founded in 1989 by Joe Kiani. The company became famous for inventing a non-invasive medical device to measure a person’s oxygen levels, which was particularly helpful in keeping newborn babies alive.
Kiani grew the company to a market cap that topped $14 billion about five years ago.
However, investors criticized his $1 billion acquisition of an audio maker company, and he was ousted after a bitter proxy battle in 2024. Kiani has praised Danaher’s acquisition of his company, saying it “does things for the long run.”
Officials said that Masimo will keep its brand as a stand-alone company within Danaher’s diagnostic segment and remain headquartered in Irvine.
Acute Care Setting Synergies
The acquisition was first announced in February and approved by shareholders a month later.
Masimo had long been on Danaher’s radar prior to the announcement, according to Danaher Chief Executive Rainer Blair.
“We’ve followed Masimo for over a decade and believe the company is well-positioned with its trusted brand, differentiated technology and attractive financial profile,” Blair said during the company’s first quarter earnings call on April 21.
Blair pointed out similarities between Masimo and Radiometer, one of Danaher’s diagnostics businesses that also operates in the acute care setting. The Denmark-based company specializes in blood gas analysis.
The businesses also bring complementary strengths geographically, with Masimo having a stronger presence in the U.S. and Radiometer being more established in Europe, Blair said.
Danaher said it expects cost synergies of $125 million and $50 million in revenue by the fifth year of the deal being closed.
Shareholders Receive $180 Per Share
Masimo shareholders received $180 for each share of the company’s common stock they held.
Analyst firm Piper Sandler’s final rating on the company was Market Perform, downgraded from Outperform following the acquisition announcement.
“We are downgrading MASI to Market Perform from Outperform, as we expect the announced acquisition by Danaher to close in 2Q/3Q26 with no other higher offers,” Jayson Bedford and Elaine Cui wrote in a March 27 note to investors.
“With shares trading near the $180/share offer price, we believe incremental upside is less attractive, supporting a lower rating.”
