Key Stats for MASI Stock
- Price Change for MASI stock: +34.22%
- MASI Share Price as of Feb. 17: $174.69
- 52-Week High: $194.88
- MASI Stock Price Target: $183.75
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What Happened?
Masimo Corporation (MASI) stock surged more than 34% in the latest session after the medical‑technology company agreed to be acquired by Danaher Corporation for $180 per share in cash, valuing the deal at roughly $9.9 to $10 billion.
The offer represents about a 40% premium to Masimo’s prior closing price near $129 and pushed the shares to around $175, just below the proposed takeout level and not far from the 52‑week high.
Under the terms, a Danaher subsidiary will merge with Masimo, which will become a wholly owned subsidiary of Danaher once the transaction closes, pending shareholder and regulatory approvals that are expected to take until the second half of 2026.
Major shareholder Politan Capital, which owns about 6.2% of Masimo, has signed a Voting and Support Agreement committing to vote its shares in favor of the deal, reducing the risk of governance opposition after previous activist tensions.
Masimo also recently announced that it will report full Q4 and full‑year 2025 results on February 26, but the company will not host a standard earnings call because of the pending transaction.
Preliminary 2025 figures point to solid top‑line growth but lingering profitability challenges, with analysts citing gross margins around the mid‑50s while EBIT margins remain pressured by R&D and legal costs tied to consumer‑device initiatives.
The buyout announcement follows a period of share‑price weakness and strategic uncertainty, including disputes over Masimo’s expansion into consumer health and legal battles around its Apple Watch‑related IP, which had weighed on sentiment.
By providing a clear cash exit at $180, Danaher’s bid effectively crystallizes value for shareholders and removes questions about the long‑term path for Masimo’s consumer and hospital‑automation businesses.
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What the Market Is Telling Us About MASI Stock
The huge one‑day move shows investors are now trading Masimo mainly as a merger‑arbitrage situation anchored around the $180 offer price rather than as a standalone medtech growth story.
Because the stock still trades a few dollars below the bid, the gap reflects typical deal‑closing risks, including regulatory approvals in multiple jurisdictions and the possibility of litigation from shareholders who argue the price undervalues the company.
Street targets had already drifted toward the low‑$180s, with recent reports citing average fair‑value estimates around $183–$184, very close to the $183.75 figure in the Street‑targets table.
That proximity suggests analysts generally viewed Masimo as only modestly undervalued before the deal, and the acquisition premium is doing most of the work for current shareholders rather than a sudden shift in fundamental outlook.
Fundamentally, Masimo remains a high‑margin monitoring business, with gross margins near 55% and a revenue base driven largely by recurring sensor sales and software‑enabled hospital‑automation platforms.
However, EBIT margins have been negative or low in recent periods because of heavy spending, restructuring efforts, and ongoing strategic investments, which made it harder for the stock to command a premium multiple on a standalone basis.
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Disclaimer:
Please note that the articles on TIKR are not intended to serve as investment or financial advice from TIKR or our content team, nor are they recommendations to buy or sell any stocks. We create our content based on TIKR Terminal’s investment data and analysts’ estimates. Our analysis might not include recent company news or important updates. TIKR has no position in any stocks mentioned. Thank you for reading, and happy investing!
