Dive Brief:
- Resmed has agreed to sell its MatrixCare software business for $490 million to private equity firm Frazier Healthcare Partners. The deal is meant to sharpen Resmed’s focus on sleep and breathing health devices and connected, home-based care.
- Divesting MatrixCare enables Resmed to reallocate capital and resources toward higher-growth opportunities and expansion of its digital health ecosystem, the company said Tuesday.
- The cash transaction is expected to close in the first quarter of Resmed’s fiscal 2027, which ends in September.
Dive Insight:
Resmed acquired MatrixCare for $750 million in 2018.
MatrixCare’s revenue growth has lagged company averages, and removing the business will allow growth in Resmed’s software unit to accelerate, KeyBanc Capital Markets analysts wrote in a note to investors.
MatrixCare provides software platforms to more than 15,000 healthcare providers, spanning skilled nursing, senior living and long-term care. The business generated about $220 million in revenue and $55 million in operating profit in fiscal 2026, based on preliminary financial results, Resmed said.
After the transaction is complete, revenue growth in Resmed’s residential care software business is expected to reach high single digits in fiscal year 2027, according to the company.
Resmed said proceeds of the sale will be used for general corporate purposes and to return capital to shareholders, including through an accelerated share repurchase program.
Last month, Resmed said it closed the $340 million purchase of Noctrix Health, the maker of a device to treat restless legs syndrome.
