Resmed sells MatrixCare business to private equity firm for $490 million
Resmed announced on Tuesday that it has reached an agreement to sell its MatrixCare long-term care software business to private equity firm Frazier Healthcare Partners for $490 million. The deal is an all-cash transaction expected to close in the first quarter of Resmed's fiscal 2027 (ending September 2026). Following the sale, Resmed will reallocate capital and resources to focus on high-growth areas such as sleep and respiratory health devices and connected home care. MatrixCare contributed approximately $220 million in revenue and $55 million in operating profit in preliminary fiscal 2026 results.
Quick Overview
- Resmed has agreed to sell its MatrixCare software business to private equity firm Frazier Healthcare Partners for $490 million. The deal aims to strengthen Resmed's focus on sleep and respiratory health devices and connected home care.
- The company said on Tuesday that divesting MatrixCare will allow Resmed to reallocate capital and resources to higher-growth opportunities and the expansion of its digital health ecosystem.
- The cash transaction is expected to close in the first quarter of Resmed's fiscal 2027 (ending September 2026).
Deep Insights
Resmed acquired MatrixCare in 2018 for $750 million. The sale price is lower than the acquisition price, reflecting the business's growth performance in recent years.
KeyBanc Capital Markets analysts noted in a report to investors that MatrixCare's revenue growth has been below the company average, and divesting the business will help accelerate growth in Resmed's software segment.
MatrixCare provides software platforms to more than 15,000 healthcare providers, covering skilled nursing, senior living communities, and long-term care. Resmed said that based on preliminary financial results, the business generated approximately $220 million in revenue and $55 million in operating profit in fiscal 2026.
The company expects that after the transaction closes, its home care software business will achieve revenue growth in the high single digits in fiscal 2027.
Resmed said proceeds from the sale will be used for general corporate purposes and returning capital to shareholders, including through an accelerated share repurchase program.
Last month, Resmed announced the completion of its $340 million acquisition of Noctrix Health, which makes devices for treating restless legs syndrome.