DHR · 10-Q · 2026Q3 · Full report
Acquisitions
DANAHER CORP /DE/ · 2026-10-21 · Importance 71 · Surprise 60 · No source text
On June 10, 2026, Danaher acquired all outstanding Masimo common stock for approximately $9.8 billion in cash, or $180 per share, net of cash acquired. Masimo generated approximately $1.5 billion of revenue in 2025 and now operates within Danaher’s Diagnostics segment, expanding the portfolio into monitoring technologies, sensors and patient monitors for primarily healthcare customers. Danaher financed the transaction with cash on hand, long-term debt and commercial paper. The preliminary purchase accounting included approximately $4.9 billion of goodwill and $5.0 billion of intangible assets, including $3.4 billion of developed technology, $895 million of customer relationships and $660 million of trade names.
Key facts
- Masimo was acquired on June 10, 2026 for a cash purchase price of approximately $9.8 billion, or $180.00 per share, net of cash acquired. source
- The Company preliminarily recorded approximately $4.9 billion of goodwill and $5.0 billion of intangible assets for the Masimo Acquisition, primarily comprised of $3.4 billion of developed technology, $895 million of customer relationships and $660 million of trade names. source
- Total segment sales for Diagnostics increased 17.0% in the three-month period ended September 25, 2026 primarily as a result of the Masimo Acquisition. source
- Diagnostics total sales growth (GAAP) was 17.0% for the three-month period and 7.5% for the nine-month period ended September 25, 2026, with acquisitions impacting growth by (16.5)% and (7.0)%, respectively. source
- Net cash used in investing activities increased approximately $9.9 billion in the nine-month period ended September 25, 2026 compared to the comparable period of 2025, primarily due to higher cash paid for acquisitions related to the Masimo Acquisition. source
- Acquisitions contributed 6.5% to the increase in sales during the three-month period ended September 25, 2026. source
- For the nine-month period ended September 25, 2026, acquisitions contributed 3.0% to the increase in sales and the impact of foreign currency increased reported sales by 1.5%, while tariff refunds to customers decreased sales by 0.5%. source
- Third quarter 2026 acquisition-related fair value adjustment to inventory related to the Masimo Acquisition in the Diagnostics segment unfavorably impacted operating profit margin by 130 basis points. source
Impact estimates
| metric | direction | stage | expected | basis |
|---|---|---|---|---|
| assets | positive | realized | +10.6% | The Company preliminarily recorded approximately $4.9 billion of goodwill and $5.0 billion of intangible assets for the Masimo… |
| revenue | positive | realized | +6.5% | Acquisitions contributed 6.5% to the increase in sales during the three-month period ended September 25, 2026. |
| revenue | positive | realized | +3.0% | For the nine-month period ended September 25, 2026, acquisitions contributed 3.0% to the increase in sales and the impact of foreign… |
| revenue | positive | realized | +1.5% | For the nine-month period ended September 25, 2026, acquisitions contributed 3.0% to the increase in sales and the impact of foreign… |
| margin | negative | realized | -1.3% | Third quarter 2026 acquisition-related fair value adjustment to inventory related to the Masimo Acquisition in the Diagnostics segment… |
| margin | negative | realized | -1.3% | Incremental dilutive effect in 2026 of acquired businesses unfavorably impacted third quarter 2026 vs third quarter 2025 operating profit… |
| margin | negative | realized | -1.1% | First nine months of 2026 fair value adjustments to inventory, transaction costs deemed significant and pre-acquisition share-based and… |
| revenue | negative | realized | -0.5% | For the nine-month period ended September 25, 2026, acquisitions contributed 3.0% to the increase in sales and the impact of foreign… |
| revenue | positive | realized | — | Total segment sales for Diagnostics increased 17.0% in the three-month period ended September 25, 2026 primarily as a result of the Masimo… |
| revenue | negative | realized | — | Diagnostics total sales growth (GAAP) was 17.0% for the three-month period and 7.5% for the nine-month period ended September 25, 2026,… |