Key Takeaways
- • Resmed is divesting MatrixCare to private equity firm Frazier Healthcare Partners for $490 million, representing a $260 million loss from its 2018 acquisition price of $750 million.
- • MatrixCare generated approximately $220 million in revenue and $55 million in operating profit in fiscal 2026, with growth rates lagging Resmed's overall portfolio averages, according to KeyBanc Capital Markets analysts.
- • The divestiture enables Resmed to reallocate capital toward higher-growth segments, particularly sleep and breathing health devices and connected home-based care platforms, with residential care software revenue expected to reach high single-digit growth in fiscal 2027.
- • Resmed plans to deploy sale proceeds for general corporate purposes and shareholder returns, including an accelerated share repurchase program.
- • The transaction is expected to close in Resmed's fiscal Q1 2027 (ending September 2026), following the company's recent $340 million acquisition of Noctrix Health.
Summary
Resmed has agreed to sell its MatrixCare software business to private equity firm Frazier Healthcare Partners for $490 million in a cash transaction. The sale represents a strategic pivot for the respiratory device manufacturer, which acquired MatrixCare for $750 million in 2018. The transaction, announced Tuesday, is expected to close in the first quarter of Resmed's fiscal 2027 ending in September 2026.
MatrixCare operates software platforms serving more than 15,000 healthcare providers across skilled nursing, senior living, and long-term care segments. In fiscal 2026, the business generated approximately $220 million in revenue and $55 million in operating profit based on preliminary results. KeyBanc Capital Markets analysts noted that MatrixCare's revenue growth has consistently lagged company averages, making it a strategic candidate for divestiture. Following the sale, Resmed expects residential care software revenue growth to accelerate to high single-digit levels in fiscal 2027.
The divestiture reflects Resmed's strategic realignment toward faster-growing market segments. By divesting MatrixCare, the company intends to sharpen focus on sleep and breathing health devices alongside connected, home-based care platforms—areas that have demonstrated stronger growth trajectories. This portfolio optimization allows Resmed to reallocate capital and resources toward its digital health ecosystem expansion and higher-growth opportunities.
Proceeds from the MatrixCare sale will support general corporate purposes and shareholder returns, including an accelerated share repurchase program. The transaction follows Resmed's recent $340 million acquisition of Noctrix Health, a restless legs syndrome device manufacturer, signaling the company's continued investment in specialized therapeutic devices while trimming lower-growth software assets.
MatrixCare operates software platforms serving more than 15,000 healthcare providers across skilled nursing, senior living, and long-term care segments. In fiscal 2026, the business generated approximately $220 million in revenue and $55 million in operating profit based on preliminary results. KeyBanc Capital Markets analysts noted that MatrixCare's revenue growth has consistently lagged company averages, making it a strategic candidate for divestiture. Following the sale, Resmed expects residential care software revenue growth to accelerate to high single-digit levels in fiscal 2027.
The divestiture reflects Resmed's strategic realignment toward faster-growing market segments. By divesting MatrixCare, the company intends to sharpen focus on sleep and breathing health devices alongside connected, home-based care platforms—areas that have demonstrated stronger growth trajectories. This portfolio optimization allows Resmed to reallocate capital and resources toward its digital health ecosystem expansion and higher-growth opportunities.
Proceeds from the MatrixCare sale will support general corporate purposes and shareholder returns, including an accelerated share repurchase program. The transaction follows Resmed's recent $340 million acquisition of Noctrix Health, a restless legs syndrome device manufacturer, signaling the company's continued investment in specialized therapeutic devices while trimming lower-growth software assets.
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