ResMed Pays Big for MatrixCare

ResMed Pays Big for MatrixCare

It’s a frothy, frothy market in most areas of health care, and the digital health space just got frothier. ResMed Inc. (NYSE: RMD), which makes medical equipment to monitor respiratory disorders, announced it paid $750 million for MatrixCare, a portfolio company of OMERS Private Equity. Right up front, ResMed touted the 25x price/EBITDA multiple, based on MatrixCare’s pro forma net EBITDA of approximately $30 million for calendar year 2018. Pro forma net revenue of $122 million in the same period is approximately 6.2x. The valuation is higher than even the sector’s biggest deal this year, Verscend Technologies’ $4.9 billion take-private deal for Cotiviti Holdings... Read More »
ResMed Adds HealthCareFirst to Home Health Solutions

ResMed Adds HealthCareFirst to Home Health Solutions

Medical device maker ResMed (NYSE: RMD) is moving deeper into the Home Health & Hospice arena. The company announced its acquisition of HealthCareFirst, which provides software solutions for home health and hospice agencies. HealthCareFirst offers electronic health record (EHR) software, billing and coding services, and advanced analytics to help agencies optimize their clinical, financial and administrative processes. Financial terms were not disclosed. Pamlico Capital is the seller, having acquired HealthCareFirst in September 2012 from The Riverside Company. ResMed’s devices and software solutions help to treat and manage sleep apnea, chronic obstructive pulmonary disease... Read More »

Sleep Services Goes to MedBridge Healthcare

Sleep disorders continue to spawn acquisitions. In February, ResMed Inc. (NYSE: RMD) paid $800 million for Brightree, a digital health company focused on post-acute segments that have a high prevalence of sleep-disordered breathing problems. This month, MedBridge Healthcare, a portfolio company of Vicente Capital Partners, paid an undisclosed price for Sleep Services of America, a wholly-owned subsidiary of the John Hopkins Health System. The Glen Burnie, Maryland-based company operates locations in Georgia, Maryland, New York, North Carolina and the District of Columbia, providing diagnosis, treatment and diagnostic studies for sleep disorders. The deal is a good fit for MedBridge,... Read More »

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... Read More »