Bloomington-Based Health Care Software Firm MatrixCare Selling to ResMed for $750M
Health care software company MatrixCare, based in Bloomington, has agreed to sell to San Diego-based ResMed for $750 million. The deal will expand ResMed’s out-of-hospital software portfolio into the skilled nursing and senior living spaces.
ResMed currently offers home medical equipment and has won awards for its devices and software treating sleep apnea, chronic obstructive pulmonary disease and other respiratory conditions.
MatrixCare, on the other hand, is known for its electronic health record (EHR) software that’s used by thousands of home care, home health and hospice organizations. Its EHR solution supports a wide variety of long-term care situations, including point of care efficiencies, lead and referral management, claims processing, payroll and nutrition management, and more.
“The acquisition of MatrixCare is an excellent addition to the out-of-hospital software portfolio that we can offer our health care provider customers,” said ResMed CEO Mick Farrell, in prepared remarks.“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.”
The employees within MatrixCare’s network – which serve more than 15,000 providers across skilled nursing, life plan communities, senior living and private duty – will join ResMed’s 6,000 staff members. Per terms of the deal, MatrixCare will continue to operate as a standalone business under ResMed’s software-as-as-service (SaaS) arm.
No immediate changes are expected to affect MatrixCare’s management, locations or business processes. MatrixCare CEO John Damgaard will continue in his role, reporting to ResMed SaaS president Raj Sodhi.
“Like MatrixCare, ResMed’s software solutions smooth the path to faster, better care, and a smarter way for clinicians to do business,” said Damgaard in a statement. “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.”
ResMed is funding the purchase with its credit facility, and following the completion of the transaction, ResMed plans to suspend its share repurchase program. MatrixCare is expected to close 2018 with a net revenue of about $122 million.
The acquisition is expected to close by the end of the second quarter of fiscal year 2019.