July 7 (Reuters) - ResMed said on Tuesday it would sell its software business MatrixCare to private equity firm Frazier Healthcare Partners for $490 million in cash, as the health technology company sharpens its focus on sleep, breathing and home-based care.
ResMed, which makes devices to manage sleep apnea, said it plans to use the net proceeds to return capital to shareholders, including through an accelerated share repurchase program, and for general corporate purposes.
• The deal includes MatrixCare
and related software offerings historically sold under the brand, including Healthcare First, Citus and home health and hospice solutions, but excludes ResMed’s Brightree business in the U.S. and MEDIFOX DAN in Germany.
• MatrixCare provides software solutions to more than 15,000 providers across skilled nursing, senior living, long-term care, home health and hospice markets.
• MatrixCare generated about $220 million in revenue and about $55 million in adjusted operating profit in fiscal year 2026, according to preliminary results filed by ResMed.
• "This move reflects Resmed’s 2030 strategy by focusing on high-growth, scalable opportunities in sleep health, breathing health and connected home-based healthcare," said the company.
• ResMed said transition services agreements with Frazier are expected to help ensure continuity across systems and operations and largely offset stranded costs in the first year after closing.
• The transaction is expected to close in the first quarter of ResMed’s fiscal year 2027.
• The company also said its recently completed Noctrix acquisition is expected to add about $30 million in revenue in fiscal 2027, while reducing adjusted profit per share by about 20 cents.
(Reporting by Puyaan Singh in Bengaluru; Editing by Jonathan Ananda)
