Apple patent adversary Masimo acquired in $9.9B deal 

Context:

• Medical device maker Masimo held a 23.1% share of the U.S. pulse oximetry systems market in 2025, with ICU Medical being its closest competitor with an 11.3% share. It was also the top player globally, controlling 21.3% of the market in 2025, ahead of Philips, its next closest competitor (13.3%). The company has roughly $1.4 billion in healthcare revenue.
• In 2020, Masimo filed a patent and trade secrets infringement complaint against Apple over some of its pulse oximetry IP. While the two companies had past partnership discussions, those never resulted in anything – Apple did, however, poach two key Masimo players (Chief Technology Officer and Chief Medical Officer). A United States International Trade Commission (ITC) investigation handed Masimo a small win, but then, after Apple presented different workarounds to that decision, the United States Customs and Border Protection (CBP) deemed the latest workaround acceptable. Last August, Masimo insinuated in a lawsuit against the government agency that this outcome was part of a deal between the Trump Administration and Apple (August 26, 2025 ip fray article). In November, two major developments occurred (November 16, 2025 ip fray article):
  • The ITC launched an investigation into the CBP’s determination of non-infringement. The Administrative Law Judge (ALJ) is due to make a decision by May.
  • A jury in the Central District of California rendered a $634M damages verdict over Apple’s infringement of Masimo’s U.S. Patent No. 10,433,776 (“Low power pulse oximeter”). The single-patent trial was separate from the trade secrets claims that gave rise to a mistrial in 2023. Apple appealed that verdict.

What’s new: U.S. life sciences company Danaher Corporation on Tuesday announced it has agreed to buy Masimo in a cash deal worth $9.9 billion (February 17, 2026 Danaher press release). Masimo will become a standalone business unit and brand within its diagnostics unit, operating autonomously while strengthening the life science conglomerate’s offering in acute care settings. Pending customary closing conditions, the acquisition is due to close in the second half of 2026.

Direct impact: Last year, Danaher’s diagnostics business raked in $9.9 billion (out of a total $24.57 billion in revenue: Danaher 2025 financial report, page 9 (PDF)). The addition of Masimo to its portfolio broadens its reach in the telehealth space. The deal’s announcement on Tuesday also prompted Masimo’s shares on the Nasdaq stock exchange to rise by over 34% to $175 per share at market open – up from $130.15 previously.

Wider ramifications: While this transaction does not directly affect the Masimo v. Apple case, it is worth noting that it changes Masimo’s position in the market and could influence its patent enforcement strategy. However, Danaher may be in a financially stronger position to see the ongoing litigation through instead of settling.