Danaher said Tuesday it has agreed to acquire patient monitoring company Masimo for $9.9 billion to bolster its diagnostics franchise.

Masimo will become a standalone business unit and brand within Danaher’s diagnostics portfolio, operating autonomously while strengthening Danaher’s offering in acute care settings, the companies said.

"Masimo's advanced sensor technology and AI-enabled monitoring bring powerful new capabilities to our diagnostics portfolio,” Julie Sawyer Montgomery, Danaher’s executive vice president for diagnostics, said in a statement.

The $180-per-share cash deal has been unanimously approved by both Masimo’s and Danaher’s boards, according to Masimo.

The acquisition comes more than a year after Masimo CEO and founder Joe Kiani resigned from the company upon losing a two-year battle with activist investor Politan Capital Management for control of the board. Katie Szyman, the former president of advanced patient monitoring at BD, stepped into the CEO role at Masimo.

Szyman, in a statement, said becoming part of Danaher will strengthen Masimo’s ability to scale its monitoring technologies globally, calling the combination an “ideal fit.”

Masimo Chairman Michelle Brennan said the board evaluated a range of opportunities over the past several months and considered multiple other potential partners.

“Ultimately, it became evident that this transaction with Danaher was the most value-enhancing path for Masimo and all its stakeholders,” Brennan said.

Masimo will join Radiometer, Leica Biosystems, Cepheid and Beckman Coulter Diagnostics under the Danaher umbrella.

Masimo is expected to contribute high-single-digit core revenue growth long-term, Danaher said, accelerating the diagnostics segment’s core revenue growth. In 2027, Masimo’s earnings before interest, tax, depreciation and amortization are projected to be more than $530 million.

The acquisition is slated to close in the second half of 2026, pending regulatory approvals and other closing conditions.