ResMed to Acquire MatrixCare for $750 Million to Expand Out-of-Hospital SaaS Portfolio

VCBeat (WeChat: vcbeat) learned from foreign media that on November 5, 2018, U.S. local time, ResMed, a global leader in internet healthcare, announced the acquisition of MatrixCare, an EHR (Electronic Health Record) software vendor, for $750 million to expand its out-of-hospital SaaS product portfolio.

MatrixCare is a leader in the U.S. long-term and post-acute care software industry, serving more than 15,000 providers across skilled nursing, life plan communities, senior living, and other sectors. The company’s EHR solution was consecutively rated “Best in KLAS” in 2017 and 2018 for use in a wide range of long-term care settings, helping healthcare providers improve patient management efficiency and service quality. Its functionalities include point-of-care documentation, claims processing, payroll, and nutrition management.

This acquisition will help ResMed expand the service scope of its SaaS software portfolio, particularly in the long-term care sector.

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Under the terms of the agreement, ResMed will acquire MatrixCare for $750 million, with the acquisition primarily financed through its credit facilities. In 2018, MatrixCare’s net revenue was projected to be approximately $122 million, with EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) of around $30 million.

The transaction is expected to close before the end of ResMed’s second fiscal quarter of 2019. Upon completion, MatrixCare will continue to operate as an independent business within ResMed’s SaaS portfolio, establishing targeted commercial, technological, and operational linkages with ResMed’s other two SaaS offerings, HEALTHCAREfirst and Brightree. According to the terms of the agreement, MatrixCare will retain its existing management team, office locations, and business processes. John Damgaard, CEO of MatrixCare, will remain in his current role, reporting to Raj Sodhi, President of ResMed SaaS.

ResMed CEO Mick Farrell stated, “The acquisition of MatrixCare is an excellent addition to our portfolio of post-acute care software solutions for healthcare provider customers. As a global leader in technology-driven medical devices, ResMed is well-positioned to become the market’s leading provider of post-acute care software. Through our combined portfolio—Brightree, HEALTHCAREfirst, and MatrixCare—we will streamline care transitions and deliver enhanced services to patients, caregivers, and post-acute care providers.”

MatrixCare, founded in 1982 and headquartered in Indiana, USA, is a multiple-time recipient of the prestigious KLAS Awards for Long-Term Care Software. MatrixCare’s solutions are trusted by more than 13,000 facility-based care providers and over 2,500 home care, home health, and hospice organizations. Its long-term care architecture enables providers to deliver person-centered care, helping them increase occupancy rates, maximize revenue, and reduce patient readmissions.

ResMed, founded in 1989 and headquartered in California, USA, is a world-leading digital health company. The company has more than 6 million cloud-connected devices for daily remote patient monitoring, and its award-winning devices and software solutions help treat and manage sleep apnea, chronic obstructive pulmonary disease (COPD), and other respiratory conditions. Currently, ResMed employs over 6,000 people worldwide, with operations spanning more than 120 countries. ResMed was listed on the NASDAQ in the United States in 1995, under the stock ticker symbol NYSE: RMD.