Propeller Health Flies to ResMed

And Propeller Health makes three. Three deals in 2018, that is, for ResMed Inc. (NYSE: RMD), which picked up Propeller for $225 million on December 3.

ResMed is a global medical device maker with more than 6 million cloud-connected devices for daily remote patient monitoring for conditions like sleep apnea, chronic obstructive pulmonary disease (COPD) and other respiratory conditions.

Propeller Health is a digital therapeutics company based in Madison, Wisconsin and backed by Aptar Pharma, Safeguard Scientifics, Social Capital, Hikma, 3M Ventures and SR One. Its products treat COPD patients in Stage 2 and 3 severity levels through connectivity, analytics and companion digital experiences. Patients, physicians and healthcare organizations in the United States, Europe and Asia use its platform.

Propeller’s products complement ResMed’s suite of cloud-connected ventilators for patients with Stage 3 and 4 COPD, including the Astral, Stellar and AirCurve 10 ST-A with iVAPS, as well as ResMed’s new portable oxygen concentrator, Mobi.

Propeller will continue to operate as a standalone business within ResMed’s Respiratory Care portfolio.

ResMed will fund the $225 million primarily with its credit facility, and after closing, the transaction is expected to have a dilutive impact on its quarterly non-GAAP earnings per share in the range of $0.01 to $0.02 during FY 2019. The deal is expected to close by the end of ResMed’s third quarter, ending March 30, 2019.

The company’s other 2018 deals added MatrixCare, Inc., an electronic health record provider to the long-term care industry, for $750 million and HEALTHCAREfirst, which provides cloud-based business and clinical services to home heatlh and hospice providers. Financial terms weren’t disclosed in that deal.

 

 

 

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