Massimo's $10 Billion Acquisition: Why Is the Stock Still Discounted?

Shares of U.S. medical device manufacturer Masimo Corporation (NASDAQ: MASI) closed at $177.32 on March 30, up 0.12% from the previous day. Its market capitalization rose by about $11 million to roughly $9.26 billion. The shares still trade at a discount of around $1.50 per share—less than 1%—relative to Danaher’s $180 per share acquisition offer.

In February, Danaher agreed to acquire Masimo for approximately $9.9 billion in an all-cash deal at $180 per share. Upon closing, Masimo will become an independent operating company under Danaher. Since the deal’s announcement, several shareholder-rights law firms have initiated fairness reviews of the transaction price, leaving the shares vulnerable to short-term volatility depending on regulatory approvals and shareholder actions.

Headquartered in Irvine, California, Masimo excels in noninvasive blood-oxygen measurement technologies, offering hospital-grade pulse oximeters, patient monitoring systems, and wearable health devices. The company gained prominence through a patent dispute with Apple over the Apple Watch’s blood-oxygen feature, and in 2024 it encountered governance issues when founder Joe Kiani resigned as CEO following a proxy fight with activist investors.