Software for Sleep Disorders Attracts $800 Million

Sleep-disordered breathing is big money. Anyone who has laid awake night after night beside a chronic snorer would pay just about anything for a bit of quiet, most likely. Enter ResMed Inc. (NYSE: RMD), which has built its business on medical devices to treat sleep-disordered breathing and respiratory care. The company has made several acquisitions over the years, predominently in the medical device sector (see chart below). Targets have ranged from the German firm MAP Medezin-Technologie, acquired in 2001, to the Chinese sleep-device maker Curative Medical, a more recent acquisition in 2015.

Two recent transactions have focused on the digital side of healthcare delivery. ResMed paid an undisclosed amount for Colorado-based CareTouch in July 2015, which added the CareTouch 360 portal, which lets home healtcare providers quickly and efficiently reorder the equipment and supplies they need to maintain a patient’s therapy.

The most recent deal was for Brightree, a portfolio company of Battery Ventures, for $800 million. Brightree provides cloud-based software that helps improve clinical and business performance in the post-acute care segments of home/durable medical equipement, home health and hospice–all areas that have high prevalence of sleep-disordered breathing, chronic obstructive pulmonary disease, neuromuscular disease and other chronic diseases. Brightree’s services complement ResMed’s Air Solutions platform, but deal also give ResMed entry to new markets in the home health and hospice segments.

More such acquisitions could be in the offing, as ResMed’s growth strategy is focused on the healthcare informatics space. Specifically, it will be looking for digital healthcare solutions that improve patient quality of life, slow disease progression and lower overall healthcare system costs. If you’ve got a candidate, give ResMed a call.

TargetSectorDatePrice
Source; Health Care M&A News
BrightreeeHealthFebruary 22, 2016$800 million
Curative MedicalMedical DevicesJuly 30, 2015N/A
CareToucheHealthJuly 8, 2015N/A
BiancaMed Ltd.Medical DevicesJuly 6, 2011N/A
Laboratoires NarvalMedical DevicesOctober 5, 2009N/A
Saime, SAMedical DevicesMay 5, 2005$110.5 million
Servo Magnetics, Inc.Medical DevicesMay 15, 2002$32.6 million
MAP Medezin-Technologie GmbHMedical DevicesFebruary 19, 2001$69 million

 

 

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