Masimo Heads For $10B Buyout After Winning Blood Oxygen Patent Case Against Apple

Danaher is reportedly set to acquire Masimo, with the deal expected to be announced as early as Tuesday.

• Masimo is undergoing an organizational realignment to sharpen its focus on core healthcare offerings.
• A U.S. jury ordered Apple to pay Masimo $634 million in damages in the patent infringement case; Apple is appealing the decision.
• Masimo had a market capitalization of $7 billion on Friday.

Med-tech firm Masimo (MASI), recently in the spotlight for its patent battle with Apple over blood oxygen monitoring technology, is nearing a roughly $10 billion buyout by life sciences giant Danaher Corp., the Financial Times reported on Monday, citing people familiar with the matter.

The deal could be announced as early as Tuesday, according to the report.

Masimo-Apple Patent Dispute

Masimo, which had a $7 billion market cap as of Friday, sells noninvasive patient monitoring systems to hospitals and is especially known for its pulse oximetry.

In 2020, Masimo accused Apple of infringing its blood-oxygen monitoring patents and certain other patents in the Apple Watch. Late last year, a U.S. jury ordered Apple to pay about $634 million in damages, adding to an earlier import ban fight at the International Trade Commission (ITC). Apple is appealing, and the broader legal battle is still ongoing.

Reset Under New Leadership

Meanwhile, Masimo is undergoing a realignment under new CEO Katie Szyman, who took over last February. In September, the company sold its Sound United consumer audio business to Harman to sharpen its focus on core healthcare.

Danaher On Healthcare Acquisition Spree

The potential deal would be another significant acquisition by Danaher. It acquired protein research firm Abcam for $5.7 billion in late 2023, and pharmaceuticals research company Cytiva for $21.4 billion in 2020. Danaher’s business spans bioprocessing platforms, molecular diagnostics, genomic technologies, and precision medicine offerings.

On Stocktwits, the retail sentiment was ‘neutral’ for Masimo, and ‘bearish’ for Danaher as of early Tuesday. Year to date, Masimo shares are up 19.1%, while Danaher shares are down 7%.

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