ResMed is buying MatrixCare, a major long-term care electronic health records vendor, for $750 million.
The purchase reflects ResMed’s growing footprint in the post-acute care sector. ResMed currently has software-as-a-service products in home medical equipment, home health and hospice, which it said is delivered through Brightree and HEALTHCAREfirst. The company bought Brightree in 2016 for $800 million.
ResMed executives said adding MatrixCare to the portfolio gives it another option for providers across the care continuum.
“The acquisition of
MatrixCare is an excellent addition to the out-of-hospital software portfolio that we can offer our healthcare provider customers,” said ResMed CEO Mick Farrell.
ResMed will fund the acquisition primarily with its credit facility. MatrixCare is expected to have net revenue of $122 million in calendar year 2018, with a pro forma EBITDA of approximately $30 million, the company said.
The deal is expected to close by the second quarter of fiscal 2019.
MatrixCare will continue to operate as a standalone business within ResMed’s SaaS portfolio, with no immediate changes to management, locations or business.
MatrixCare CEO John Damgaard will continue in his current role, reporting to ResMed SaaS President Raj Sodhi.
“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,” Sodhi said.