Key Takeaways:
- ResMed divests MatrixCare to Frazier Healthcare Partners for $490 million in cash
- The deal sharpens ResMed's focus on sleep health and connected home-based care
- Closing expected in the first quarter of ResMed's fiscal 2027
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ResMed sells MatrixCare to Frazier Healthcare for $490 million
ResMed Inc. agreed to sell its MatrixCare software business to private equity firm Frazier Healthcare Partners for $490 million in cash, the company said Tuesday, as the health technology company narrows its focus on sleep, breathing and home-based care.
"The divestiture strengthens ResMed's ability to reallocate capital and resources toward innovation, operational scale and long-term value creation across its connected, home-based care ecosystem," Mick Farrell, chairman and chief executive officer of ResMed, said in a statement.
MatrixCare provides cloud-based electronic health record software to more than 15,000 providers across skilled nursing, senior living, home health and hospice care. The business, a multi-year winner of the Best in KLAS award, includes related offerings sold under the Healthcare First, Citus and home health and hospice brands. The transaction excludes ResMed's other software units, Brightree in the U.S. and MEDIFOX DAN in Germany.
The $490 million price tag reflects ResMed's 2030 strategy of prioritizing high-growth, scalable opportunities in sleep health and connected care. Frazier, which has raised more than $11 billion since its founding in 1991 and invested in over 200 companies, plans to invest aggressively in product innovation at MatrixCare, according to Ryan Lucero, a general partner at the firm. "Frazier has spent several years evaluating the post-acute care technology sector and believes MatrixCare has established itself as a leading platform," Lucero said.
The transaction is subject to customary closing conditions and regulatory approvals, with completion expected during the first quarter of ResMed's fiscal 2027, which corresponds to the third calendar quarter of 2026. Until closing, MatrixCare will continue to operate as part of ResMed with no changes to customer service or support. ResMed said it will provide further details on the financial impact in its fourth-quarter fiscal 2026 regulatory filings.
For Frazier, the acquisition marks a bet on the post-acute care technology market, where an aging U.S. population is driving demand for digital tools that improve provider efficiency and patient outcomes. The deal also gives the private equity firm a platform with entrenched relationships across thousands of care facilities, creating opportunities for add-on acquisitions and product expansion. ResMed, meanwhile, gains cash to reinvest in its core sleep apnea devices, cloud-connected breathing machines and AI-powered digital health offerings, where it competes with the likes of Philips and Fisher & Paykel Healthcare.
This article is for informational purposes only and does not constitute investment advice.
