ResMed, a company that provides medical equipment and home management software, said it will buy MatrixCare in a deal worth $750m (£575m), according to a press release issued on Monday November 5th.
The acquisition of MatrixCare is set to help ResMed expand its software as-a-service-offering (SaaS), specifically in the home medical care setting.
The deal is expected to be finalised by the end of the fiscal year. On completion of the deal, MatrixCare is expected to remain a standalone business within ResMed’s portfolio.
“We’re thrilled to be part of a global healthcare leader that shares our mission, leveraging technology to improve the quality of life for seniors and those who care for them,” said MatrixCare CEO John Damgaard.”
MatrixCare has 6,000 employees and aims to create technology that provides better and smarter care that improves the quality of life for patients and save health care cost in more than 120 countries.
The acquisition is expected to double ResMeds size and will bolster the company’s revenue base.
For 2018, MatrixCare is expected to generate an income of “approximately $122m, with a pro forma EBITDA of approximately $30m.”
The company said that the deal will ResMed 11th – and largest – acquisition in the past four years.
“The acquisition of MatrixCare is an excellent addition to the out-of-hospital software portfolio that we can offer our healthcare provider customers,” ResMed CEO Mick Farrell said.
“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.”
In the summer, the company also partnered with Alphabet Subsidiary Verily to help develop sleep apnea treatments and health products.
Whether ResMed plans to acquire other targets in the future remains to be seen.