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Expands ResMed’s out-of-hospital software portfolio into skilled
nursing and senior living verticals
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Enhances ResMed’s ability to improve patient transitions of care
and provider efficiencies
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Purchase price $750 million, accretive to non-GAAP gross margin and
non-GAAP diluted earnings per share
SAN DIEGO--(BUSINESS WIRE)--
ResMed (NYSE: RMD) (ASX: RMD) today announced it has signed a definitive
agreement to acquire privately held MatrixCare, a leader in U.S.
long-term post-acute care software, serving more than 15,000 providers
across skilled nursing, life plan communities, senior living and private
duty.
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These care settings are complementary to ResMed’s current
software-as-a-service (SaaS) offerings in home medical equipment, home
health and hospice, delivered through Brightree and HEALTHCAREfirst.
Named “Best in KLAS” for long-term post-acute care software in 2017 and
2018, Minnesota-based MatrixCare’s electronic health record (EHR)
solution supports a wide range of long-term care settings, enabling
providers to increase patient management efficiencies and deliver
superior clinical care. Its wide range of offerings includes point of
care, lead and referral management, claims processing, payroll and
nutrition management, among others.
“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 is the
world’s leading tech-driven medical device company and is well
positioned to be the leading out-of-hospital software provider in the
market. 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.”
“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,” said ResMed SaaS President Raj Sodhi.
“We’re thrilled to be part of a global healthcare leader that shares our
mission, leveraging technology to improve the quality of life for
seniors and those who care for them,” said MatrixCare CEO John Damgaard.
“Out-of-hospital care today is incredibly fragmented, with individuals
struggling to navigate across care settings, and providers often unable
to assist. Like MatrixCare, ResMed’s software solutions smooth the path
to faster, better care, and a smarter way for clinicians to do business.
The entire MatrixCare team and I look forward to joining forces with
them.”
Terms of the transaction
Under the agreement terms, ResMed will acquire MatrixCare for $750
million, which ResMed will fund primarily with its credit facility. In
calendar year 2018, MatrixCare pro forma net revenue is estimated to be
approximately $122 million, with a pro forma EBITDA of approximately $30
million.
The transaction is expected to be immediately accretive to non-GAAP
gross margin and non-GAAP diluted earnings per share after close and
beyond. The purchase price of $750 million represents a valuation
multiple of 25 times the expected calendar year 2018 pro forma EBITDA of
$30 million.
The transaction is expected to close by the end of the second quarter of
ResMed’s fiscal year 2019, subject to customary closing conditions and
any applicable regulatory approvals. Following completion of the
transaction, ResMed intends to suspend its share repurchase program.
On completion of the transaction, MatrixCare will continue to operate as
a standalone business within ResMed’s SaaS portfolio, with targeted
commercial, technical and operating links to ResMed and Brightree. There
will be no immediate changes to management, locations or business
processes. MatrixCare CEO John Damgaard will continue in his current
role, reporting to Raj Sodhi.
About ResMed
ResMed (NYSE: RMD) (ASX: RMD), a world-leading connected health company
with more than 6 million cloud-connected devices for daily remote
patient monitoring, changes lives with every breath. Its award-winning
devices and software solutions help treat and manage sleep apnea,
chronic obstructive pulmonary disease and other respiratory conditions.
Its 6,000-member team strives to improve patients’ quality of life,
reduce the impact of chronic disease and save healthcare costs in more
than 120 countries. ResMed.com
About MatrixCare
Current and multi-time winner of the prestigious Best in KLAS for
Long-Term Care Software award, MatrixCare is the complete solution for
growing organizations that need to successfully manage risk in care
delivery across the long-term post-acute care (LTPAC) spectrum. Trusted
by more than 13,000 facility-based care settings and more than 2,500
home care, home health and hospice organizations, MatrixCare’s solutions
help Accountable Care Organizations, skilled nursing and senior living
providers, life plan communities, and home health organizations to
connect, collaborate and prosper as we migrate to a fee-for-value
healthcare system. In addition to electronic health record components
purpose-built for any LTPAC care-setting, MatrixCare also includes
solutions to systematically increase clinical quality: Enterprise
Analytics, robust Clinical Decision Support and the industry’s first
Care Coordination platform to create a true, person-centric,
e-longitudinal health record and enable LTPAC providers to efficiently
manage the populations under their care. Visit www.matrixcare.com
and www.carecommunity.com
for more information.
Forward-looking statements
Statements contained in this news release that are not historical facts
are “forward-looking” statements as contemplated by the Private
Securities Litigation Reform Act of 1995. These forward-looking
statements – including statements regarding ResMed’s projections of
future revenue or earnings, expenses, new product development, new
product launches and new markets for its products and the integration of
acquisitions – are subject to risks and uncertainties that could cause
actual results to materially differ from those projected or implied in
the forward-looking statements. Additional risks and uncertainties are
discussed in ResMed’s periodic reports on file with the U.S. Securities
& Exchange Commission. ResMed does not undertake to update its
forward-looking statements.
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ResMed
For media:
Jayme Rubenstein
+1 858.836.6798
news@resmed.com
or
For
investors:
Amy Wakeham
+1 858.836.5000
investorrelations@resmed.com
Source: ResMed