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Tuesday 20

November, 201811:31 AM



ResMed buys US software company for $1bn

ResMed buys US software company for $1bn

Dual-listed sleep apnea equipment developer ResMed is set to buy US health software company MatrixCare for $US750 million ($A1.04bn).

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By AAP 06.11.2018 10:06 AM

Dual-listed sleep apnea device specialist ResMed is set to expand its software-as-a-service portfolio with the $US750 million ($A1.04bn) purchase of US healthcare software company, MatrixCare.

ResMed, listed in both Sydney and New York, said Minnesota-based MatrixCare provides acute long-term healthcare software to more than 15,000 providers across skilled nursing, life plan communities, senior living and private duty.

The deal is expected to close before ResMed's half-year results, subject to regulatory approvals.

"The acquisition of MatrixCare is an excellent addition to the out-of-hospital software portfolio that we can offer our healthcare provider customers," ResMed chief executive Mick Farrell said in a release.

ResMed, which specialises in treating sleep disorders and respiratory diseases, said it will fund the purchase primarily with its credit facility.

It will suspend its share repurchase program once the transaction is complete.

In the 2018 calendar year, MatrixCare's pro forma net revenue is estimated to be approximately $US122 million ($A169.21 million), with pro forma earnings of approximately $US30 million ($A41.61 million).

ResMed shares were trading at $A14.63 before the open of the ASX on Tuesday.

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