en.Wedoany.com Reported - ResMed announced the sale of its MatrixCare software business to private equity firm Frazier for $490 million. The transaction includes MatrixCare and its brands such as HealthcareFirst and Citus, as well as ResMed's home health and hospice products, but excludes the company's retained U.S. Brightree division and Germany's MEDIFOX DAN business.
MatrixCare generated approximately $220 million in revenue and about $55 million in non-GAAP operating profit in ResMed's fiscal year 2026. This deal aligns with the current wave of software business divestitures, similar to transactions like Ametek's acquisition of Indicor's instrumentation business, where buyers take over mature business units that sellers no longer consider core. For healthcare-focused investor Frazier, MatrixCare is a profitable software provider embedded in the growth market of home and post-acute care, with its systems at the administrative core of care providers arranging visits, managing records, and obtaining payments. MatrixCare's software operates the back office of skilled nursing facilities, home health agencies, and hospice organizations, representing a stable, recurring revenue business.
ResMed's core business is hardware, known for devices and masks that treat sleep apnea and other respiratory conditions. The company positions this sale as part of its 2030 plan strategy, which focuses on sleep health, respiratory health, and connected home care. Proceeds will be returned to shareholders, with ResMed stating it plans to use net proceeds for capital returns, including through an accelerated share repurchase program, with the remainder for general corporate purposes.
The software business has always been a mixed legacy for ResMed. It built a set of tools around its devices and data, but running independent applications for third-party care providers is a fundamentally different business from selling ventilators and masks. Meanwhile, private equity continues to absorb such assets, a pattern seen across the market. The transaction is expected to close in ResMed's fiscal first quarter of 2027, subject to customary conditions. At $490 million against approximately $220 million in revenue, the sale multiple is lower than levels seen for such assets a few years ago, indicating buyers have become more disciplined.
