Medical device company ResMed looks to expand its software-as-a-service business through a recently announced acquisition.
San Diego-based ResMed on Nov. 5 stated it would pay $750 million for MatrixCare, maker of post-acute care software for more than 15,000 providers of skilled nursing, senior living and similar service. MatrixCare’s offerings span leads and referral management, claims processing, payroll and nutrition management, tied into electronic health records.
ResMed said MatrixCare will complement software-as-a-service offerings from two other companies it acquired: Brightree and Healthcarefirst. ResMed is known for digitally streaming medical devices for sleep disorders, namely sleep apnea.
“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,” said ResMed CEO Mick Farrell.
MatrixCare’s 2018 net revenue is estimated to reach $122 million, with $30 million in earnings before interest, tax, depreciation and amortization, or EBITDA.
After closing, the acquisition is expected to be immediately accretive to non-GAAP (generally accepted accounting principals) gross margin and non-GAAP diluted earnings per share, according to ResMed.
MatrixCare will operate as a standalone business within ResMed, and MatrixCare CEO John Damgaard will continue in his current role, reporting to ResMed’s Raj Sodhi, according to ResMed.