Danaher Corp. (NYSE:DHR) is reportedly nearing a roughly $9.9 billion acquisition of Masimo Corp. (NASDAQ:MASI), a move that follows significant governance changes at the medical device maker driven by activist investors.

A transaction for the California-based Masimo could be announced as early as Tuesday, the Financial Times reported, provided there are no last-minute complications, according to people familiar with the matter.

The deal represents a notable premium to Masimo’s nearly $7 billion market capitalization as of Friday’s close.

The potential deal comes two years after activist hedge fund Politan Capital Management led a proxy contest that resulted in the removal of founder Joe Kiani as board chair.

Kiani subsequently stepped down as chief executive but retains about a 5% stake in the company. Politan, founded by Quentin Koffey, holds close to 9% ownership after securing four board seats.

The FT ...