The sale of MatrixCare, a provider of electronic health record (EHR) solutions for post-acute care, will enable ResMed to focus resources on faster-growing areas of its business portfolio.
Key Highlights:
- Resmed has entered into an agreement to sell its MatrixCare software business to private equity firm Frazier Healthcare Partners for $490 million. The move supports the company’s strategy to strengthen its focus on sleep and respiratory care solutions, as well as connected home healthcare services.
- The company stated that the divestiture will allow it to redirect capital and operational resources toward faster-growing business segments and further expand its digital health portfolio.
- The all-cash transaction is expected to be completed during the first quarter of Resmed’s fiscal year 2027, ending in September 2026.
Market Insight:
Resmed purchased MatrixCare for $750 million in 2018 as part of its expansion into healthcare software. However, the business has delivered slower revenue growth compared with the company’s broader operations. Analysts at KeyBanc Capital Markets noted that divesting MatrixCare could help accelerate growth within Resmed’s remaining software portfolio.
MatrixCare currently supports more than 15,000 healthcare organizations across skilled nursing, senior living, and long-term care sectors. Based on preliminary fiscal 2026 results, the business generated approximately $220 million in revenue and $55 million in operating profit.
Resmed expects its residential care software segment to achieve high single-digit revenue growth in fiscal 2027 following the completion of the transaction. The company plans to use the proceeds from the sale for general corporate purposes and shareholder returns, including an accelerated share repurchase program.
The announcement follows Resmed’s recent acquisition of Noctrix Health for $340 million. Noctrix develops medical devices designed to treat restless legs syndrome, further strengthening Resmed’s portfolio in sleep and respiratory health.
