Sirius XM to join S&P MidCap 400 as Danaher buys Masimo

Sirius XM Holdings Inc. will replace Masimo Corp. in the S&P MidCap 400, effective before the opening bell on Thursday, June 11, S&P Dow Jones Indices said Monday.

The index change follows Danaher Corp.'s pending acquisition of Masimo, which is expected to close soon pending final conditions, the index provider said. Danaher, a member of both the S&P 500 and S&P 100, is acquiring the medical technology company in a deal that will remove Masimo from the mid-cap benchmark.

Sirius XM's addition will trigger forced buying from passive funds that track the S&P MidCap 400, likely driving its share price higher in the days leading to the effective date. The satellite radio operator, which emerged from a complex corporate structure involving Liberty Media, will gain exposure to a broader base of institutional investors that benchmark against the mid-cap index. Index inclusion typically increases trading volume and analyst coverage for newly added stocks.

The reconstitution highlights ongoing consolidation in the med-tech sector, where larger players are acquiring smaller peers to expand product portfolios. Masimo, known for its pulse oximetry and patient monitoring systems, will become part of Danaher's diagnostics segment upon deal completion. The acquisition follows a broader trend of health-care companies pursuing vertical integration to capture more of the value chain.

For Sirius XM, the index inclusion marks a milestone as the company operates independently following its separation from Liberty Media. The stock's addition to the S&P MidCap 400 comes as the satellite radio industry faces competition from streaming services, making index-driven demand a supportive factor for the shares.

This article is for informational purposes only and does not constitute investment advice.