ResMed to sell MatrixCare software business for $490 million

• MatrixCare generated approximately $220 million in revenue and $55 million in adjusted operating profit in fiscal year 2026, serving over 15,000 providers across skilled nursing, senior living, and hospice markets
• The sale excludes ResMed's Brightree business in the U.S. and MEDIFOX DAN in Germany, aligning with the company's 2030 strategy to focus on high-growth, scalable opportunities
• Transition services agreements with Frazier will help ensure operational continuity and largely offset stranded costs in the first year after closing

ResMed Divests MatrixCare Software Business for $490 Million

ResMed announced on July 7 that it will sell its MatrixCare software business to private equity firm Frazier Healthcare Partners for $490 million in cash. The divestiture aligns with ResMed's strategic refocusing on its core competencies in sleep health, breathing health, and home-based care solutions.

Transaction Details:

• The sale includes MatrixCare and related software offerings (Healthcare First, Citus, home health and hospice solutions)
• Excludes ResMed's Brightree business (U.S.) and MEDIFOX DAN (Germany)
• MatrixCare serves over 15,000 providers across skilled nursing, senior living, long-term care, home health, and hospice markets
• Expected closing: Q1 of ResMed's fiscal year 2027

Financial Performance:

MatrixCare generated approximately $220 million in revenue and $55 million in adjusted operating profit in fiscal year 2026, based on preliminary results.

Strategic Rationale:

ResMed, known for its sleep apnea management devices, plans to use net proceeds for capital returns to shareholders. The company stated this move reflects its 2030 strategy, emphasizing "high-growth, scalable opportunities" in its core healthcare segments.

Transition services agreements with Frazier are designed to ensure operational continuity and largely offset stranded costs during the first post-closing year.

Additional Context:

ResMed's recent Noctrix acquisition is projected to contribute approximately $30 million in revenue during fiscal 2027, though it will reduce adjusted profit per share.

Market Implications:

The divestiture represents a portfolio optimization strategy, allowing ResMed to concentrate resources on higher-growth opportunities while monetizing a non-core asset. The transaction strengthens the company's balance sheet and provides flexibility for strategic investments in its primary healthcare technology segments.