ResMed has slipped out plans on spending $US750 million ($A1.06 billion) on MatrixCare, which is long-term post-acute care software used by 15,000 health centres in the US.
The sale should conclude by the end of this year and MatrixCare will continue to operate as a standalone business within ResMed’s software-as-a-service (SaaS) with links to ResMed. There are no immediate changes to management.
ResMed shares last traded at $14.54, down 0.6% on the ASX on Tuesday.
In a statement filed with the ASX and US SEC, Resmed said the acquisition of MatrixCare “ s an excellent addition to the out-of-hospital software portfolio that we can offer our healthcare provider customers.
Resmed CEO Mick Farrell said in the statement that. “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.”
“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.
“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.
“Out-of-hospital care today is incredibly fragmented, with those struggling to navigate across care settings, and providers often unable to assist. Like MatrixCare, ResMed’s software solutions smooth the path to faster, better care, and a smarter way for clinicians to do business. The entire MatrixCare team and I look forward to joining forces with them.”
Resmed said it would fund the $US750 million primarily with its credit facility.
In the calendar year 2018, MatrixCare pro forma net revenue is estimated to be approximately $US122 million, with a pro forma EBITDA of approximately $US30 million.
