ResMed to Acquire MatrixCare Seniors Housing Software Platform for $750M

SAN DIEGO and MINNEAPOLIS — ResMed (NYSE: RMD), a San Diego-based healthcare device company, has agreed to acquire MatrixCare, a Minneapolis-based software company focused on the seniors housing industry, for $750 million.

ResMed is a publicly traded company that is largely focused on devices such as CPAP breathing machines. However, the company has its fingers in many different areas and believes MatrixCare can expand its software-as-a-service (SaaS) offerings. 

ResMed’s current portfolio of software companies includes Brightree and HEALTHCAREfirst, both of which serve the home care and hospice industries. The MatrixCare acquisition marks ResMed’s first direct involvement in the seniors housing space.

MatrixCare’s electronic health record (EHR) solution supports a wide range of long-term care settings, enabling providers to increase patient management efficiencies and improve clinical care. Its offerings includes point-of-care, lead and referral management, claims processing, payroll and nutrition management, among others.

“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,” says ResMed CEO Mick Farrell.

“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,” adds Raj Sodhi, president of ResMed SaaS.

ResMed will fund the acquisition primarily with its credit facility. The transaction is expected to close by the end of the second quarter of ResMed’s fiscal year 2019, subject to customary closing conditions and regulatory approvals. 

On completion of the transaction, MatrixCare will continue to operate as a standalone business within ResMed’s SaaS portfolio, with targeted commercial, technical and operating links to ResMed and Brightree. There will be no immediate changes to management, locations or business processes. MatrixCare CEO John Damgaard will continue in his current role, reporting to Sodhi.

ResMed stock closed at $105.00 per share on Monday, Nov. 5, up significantly from $83.06 one year ago.