High margin, sensor based data is the next frontier for 'Big MedTech'

Danaher’s $10 Billion acquisition of Masimo announced today has fundamentally shifted the patient monitoring landscape. By folding the world leader in pulse oximetry into its Diagnostics segment, Danaher has signaled that high margin, sensor based data is the next frontier for "Big Medech."

This move likely triggers a "scramble for scale" among competitors who need to defend their hospital footprints or expand into the rapidly growing Remote Patient Monitoring (RPM) sector.

Here are the primary M&A targets currently in the spotlight:

1. The "Pure Play" Pulse Oximetry Targets

Now that Masimo is off the board, smaller specialists with proprietary sensor technology are high-value "tuck-in" targets for companies like GE HealthCare or Medtronic.

Nonin Medical: Based in Minnesota, Nonin is arguably the most attractive remaining independent. They invented finger pulse oximetry and have a strong footprint in both clinical and EMS settings. Their recent acquisition of MedAir AB (Sept 2025) for gas analysis suggests they were beefing up their own portfolio, potentially to make themselves a more complete acquisition package.

Nihon Kohden (International Arms): While a giant in Japan, its international patient monitoring business is often viewed as a candidate for a strategic partnership or carve-out. Their January 2026 acquisition of DOWELL Co.shows they are leaning into perioperative IT, making them a "smart" monitoring play.

2. The Strategic "Carve-Outs"

Larger conglomerates are under pressure to simplify. Analysts are watching for the following potential divestitures:

Edwards Lifesciences (Critical Care/Monitoring): Edwards has been vocal about focusing almost exclusively on Structural Heart (TAVR/TMTT). Their Critical Care division, which includes advanced hemodynamic monitoring, has long been rumored as a candidate for a spin-off or sale. A buyer like Baxter or a private equity consortium could see this as a foundational monitoring platform.

Philips Healthcare (Selective Divestment): Philips remains a leader in patient monitoring, but continued litigation and restructuring costs may force them to sell off non-core "niche" monitoring assets (like their consumer-grade RPM or wearable divisions) to shore up their balance sheet.

3. High-Growth "Hospital-to-Home" Platforms

Danaher’s interest in Masimo was partly driven by AI-enabled sensors and telehealth. This puts a premium on firms that bridge the gap between hospital beds and home care:

HealthArc: Currently ranked as a top RPM platform in 2026, HealthArc's end-to-end ecosystem makes it a prime target for a medical device giant (like Stryker or Abbott) looking to add a "software layer" to their hardware.

Athelas: Known for high-frequency data collection and a modern UI, Athelas represents the "next-gen" of monitoring that appeals to tech-forward buyers.

BioIntelliSense: Their medical-grade "stick-and-forget" wearable sensors are the exact type of "consumable" revenue model that Danaher/Masimo competitors will want to replicate.

Source: https://investors.danaher.com/2026-02-17-Danaher-To-Acquire-Masimo-Corporation