A landmark $10 billion acquisition by Danaher marks a pivotal moment for Masimo, the healthtech company renowned for its pulse oximetry technology.
The Deal
Danaher’s agreement to acquire Masimo for nearly $10 billion, or $180 a share in cash (an approximately 40% premium), signifies a major expansion of its diagnostics franchise. The deal, announced Tuesday, will see Irvine, Calif.-based Masimo operate as a standalone entity within Danaher’s diagnostics portfolio, alongside established names like Radiometer and Beckman Coulter Diagnostics. For Masimo founder Joe Kiani, the transaction brings to a close a 36 year journey in building the company.
Joe Kiani’s Vision and Masimo’s Rise
Joe Kiani, the Iranian immigrant who started Masimo in 1989 with a second mortgage on his condo, transformed the company into a powerhouse in pulse oximetry. Kiani’s relentless pursuit of innovation, marked by patented technology and a willingness to take on larger competitors, was instrumental in Masimo’s success. His net worth currently stands at $1.2 billion. Kiani told Forbes, “It was a privilege to do this Masimo thing. I did it for 36 years. Once the activists got involved, it was pretty bad–it was miserable for a couple of years.” He resigned as CEO in 2024 after a proxy battle with Politan Capital Management.
Activist Investor Influence
The path to this acquisition wasn’t without its challenges. Kiani faced a prolonged and difficult battle with activist investor Politan Capital Management, ultimately leading to his resignation as CEO and ouster from the board in 2024. Despite the turbulent period, Kiani remains a significant shareholder, with his existing stake worth over $500 million at the acquisition price. He also holds additional equity subject to a dispute with the company.
The $10 Billion Acquisition: A Strategic Move
Danaher’s acquisition of Masimo is a strategic move to enhance its diagnostics capabilities. Masimo’s expertise in pulse oximetry and patient monitoring complements Danaher’s existing portfolio, creating synergies that are expected to drive growth and innovation. Kiani expressed his satisfaction with the outcome, stating that “it seems like a really good ending compared to where it could have gone.”
Kiani’s Next Chapter
With the acquisition complete, Kiani is turning his attention to other ventures. As executive chairman of Willow Labs, he is focused on a digital health platform aimed at improving metabolic health. He is also CEO and chairman of Like Minded Labs, which developed the Coresee virtual conferencing platform. Additionally, Kiani is an investor in approximately 10 companies and serves on the board of Clairity, an AI-driven medtech company predicting breast cancer risk, and SMSbiotech, developing regenerative therapies. He certainly won’t be retiring anytime soon. “I couldn’t just retire and go have so-called fun,” he said. “I enjoy bringing products to market. Once I imagine something that needs to be out there, I can’t stop thinking about it.”
Market Impact and Future Outlook
The $10 billion acquisition is expected to have a significant impact on the healthtech industry. Danaher’s increased presence in patient monitoring could put pressure on existing players and spur further consolidation. Analysts predict that the deal will be accretive to Danaher’s earnings and enhance its long-term growth prospects. This deal will likely encourage other companies to more success stories in the healthcare sector.
“It’s bringing back a lot of memories,” he told _Forbes_. “It was a privilege to do this Masimo thing. I did it for 36 years. Once the activists got involved, it was pretty bad–it was miserable for a couple of years.”
Source: Forbes
