Key Takeaways
- • ResMed divests MatrixCare to Frazier Healthcare Partners for $490 million in all-cash consideration, closing expected in Q1 fiscal 2027 subject to regulatory approvals.
- • MatrixCare generated $220 million in revenue and $55 million in non-GAAP operating profit in fiscal 2026, representing a $260 million markdown from ResMed's $750 million acquisition price in 2018.
- • ResMed plans to deploy net proceeds toward shareholder capital returns, including an accelerated share repurchase program, and general corporate purposes aligned with its 2030 strategic focus on sleep and connected care.
- • The Noctrix acquisition—completed separately—will contribute approximately $30 million in revenue in fiscal 2027 but reduce non-GAAP diluted EPS by $0.20, creating a near-term earnings headwind.
- • Transition services agreements are expected to offset first-year stranded costs from the MatrixCare separation.
Summary
ResMed (NYSE: RMD) has agreed to sell its MatrixCare software business to Frazier Healthcare Partners, a healthcare-focused private equity firm, for $490 million in cash. The transaction is expected to close in the first quarter of fiscal 2027, subject to regulatory approvals and customary closing conditions. This divestiture marks a strategic portfolio realignment as ResMed narrows its focus toward core sleep and connected care solutions.
MatrixCare, which serves over 15,000 care providers, generated approximately $220 million in revenue and $55 million in non-GAAP operating profit during fiscal 2026. The sale price represents a significant markdown from ResMed's original $750 million acquisition of MatrixCare in 2018—an $260 million loss on the eight-year holding period. ResMed characterizes the divestiture as aligned with its 2030 strategic priorities, enabling capital redeployment toward higher-growth initiatives.
ResMed intends to use the net proceeds from the MatrixCare sale for shareholder capital returns, including an accelerated share repurchase program, and for general corporate purposes. The company anticipates that transition services agreements will largely offset stranded costs incurred in the first year following separation, limiting operational disruption.
Contemporaneously, ResMed's recently completed Noctrix acquisition will introduce a modest earnings headwind. The deal is projected to contribute approximately $30 million in revenue in fiscal 2027 but reduce non-GAAP diluted EPS by about $0.20. Despite this near-term dilution, ResMed reiterated its fiscal 2026 outlook and targets high single-digit revenue growth with operating leverage expansion in its Residential Care Software segment for fiscal 2027. The company maintains its broader strategic guidance, positioning the MatrixCare exit and Noctrix integration as components of a larger portfolio optimization strategy.
MatrixCare, which serves over 15,000 care providers, generated approximately $220 million in revenue and $55 million in non-GAAP operating profit during fiscal 2026. The sale price represents a significant markdown from ResMed's original $750 million acquisition of MatrixCare in 2018—an $260 million loss on the eight-year holding period. ResMed characterizes the divestiture as aligned with its 2030 strategic priorities, enabling capital redeployment toward higher-growth initiatives.
ResMed intends to use the net proceeds from the MatrixCare sale for shareholder capital returns, including an accelerated share repurchase program, and for general corporate purposes. The company anticipates that transition services agreements will largely offset stranded costs incurred in the first year following separation, limiting operational disruption.
Contemporaneously, ResMed's recently completed Noctrix acquisition will introduce a modest earnings headwind. The deal is projected to contribute approximately $30 million in revenue in fiscal 2027 but reduce non-GAAP diluted EPS by about $0.20. Despite this near-term dilution, ResMed reiterated its fiscal 2026 outlook and targets high single-digit revenue growth with operating leverage expansion in its Residential Care Software segment for fiscal 2027. The company maintains its broader strategic guidance, positioning the MatrixCare exit and Noctrix integration as components of a larger portfolio optimization strategy.
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