ResMed, maker of medical equipment and home health management software, announced it has signed a definitive agreement to acquire privately held MatrixCare, for $750 million. MatrixCare is a Minnesota-based EHR company targeted towards long-term post-acute care services, such as skilled nursing facilities, life plan communities and senior living homes.
MatrixCare will broaden RedMed’s software-as-a-service portfolio. ResMed, who will be exhibiting at the WT | Wearable Technologies Show MEDICA 2018 on November 12-15 in Düsseldorf, appears to be developing an integrated stack of hardware and software for out-of-hospital care.
This acquisition will also diversify ResMed’s revenue base. In the first quarter, the company announced 8% of its revenue was attributed to software as a service with 55% of sales from devices to 37% to masks and accessories.
“By establishing a technology footprint across these major care settings, ResMed will drive an integrated ecosystem of solutions, such as maintaining single-patient records across multiple care settings, generating analytics and insights that can be applied to individuals and whole populations, and streamlining processes for healthcare providers across the care continuum,” said ResMed SaaS President Raj Sodhi in a statement.
Under the terms of the acquisition, ResMed will fund the $750 million primarily with its credit facility. Matrix’s pro forma net revenue is estimated to be approximately $122 million, with a pro forma EBITDA of approximately $30 million.
ResMed deals primarily in equipment related to the treatment of sleep-related breathing disorders, including sleep apnea, chronic obstructive pulmonary disease (COPD), and other respiratory conditions. Some of ResMed’s best-known products are the AirMini and S+. The company was also part of SleepScore Labs, a joint venture with Dr. Oz Media and Pegasus Capital Advisors. Last fall it launched a non-contact sleep improvement device, reports MobiHealthNews.
Wearable Technologies reported this summer that ResMed partnered with Alphabet subsidiary Verily to develop sleep apnea treatments and connected health products.
“The acquisition of MatrixCare is an excellent addition to the out-of-hospital software portfolio that we can offer our healthcare provider customers,” said ResMed CEO Mick Farrell. “ResMed is the world’s leading tech-driven medical device company and is well positioned to be the leading out-of-hospital software provider in the market. With our portfolio including Brightree, HEALTHCAREfirst, and MatrixCare, we will streamline transitions of care, creating better outcomes for patients, caregivers, and out-of-hospital healthcare providers.”