ResMed to acquire out-of-hospital software developer Medifox Dan for $1 billion

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ResMed (NYSE: RMD) today announced that it has agreed to acquire German software company Medifox Dan in a deal worth $1 billion.

Medifox Dan, based in Hildesheim, Germany, develops clinical, financial and operational software solutions for out-of-hospital care providers. Its offerings include care documentation, staff scheduling, administration, billing and more.

According to a press release, Medifox Dan’s solutions are similar to those of ResMed’s leading US SaaS brands, MatrixCare and Brightree.

Under the terms of the agreement, ResMed will acquire Medifox Dan from Hg, a software and services investor, for approximately $1.0 billion (€950 million), which ResMed plans to fund with its credit facilities. existing.

ResMed expects the acquisition of the company, which recorded pro forma net revenue of approximately $83 million in calendar year 2021, to be accretive to its adjusted diluted earnings per share. post-closing, which is scheduled for the end of ResMed’s second quarter of fiscal year 2023 (December 31, 2022).

Medifox Dan’s more than 600 employees are expected to be retained, along with its management structure, sites and business processes. Co-CEOs Dr. Thorsten Schliebe and Christian Städtler will continue in their current roles, reporting to ResMed SaaS President Bobby Ghoshal, with Medifox Dan to operate under its current brand within the ResMed SaaS business, as Brightree and MatrixCare do.

ResMed expects Medifox Dan’s German customer base to be complementary to customers of its own US-based SaaS business, with the acquisition aiming to build on ResMed’s existing business in Germany as a device provider cloud-connected medical devices that are transforming care for patients with sleep apnea and other respiratory conditions.

“With the acquisition of Medifox Dan, an innovative and fast-growing German healthcare software leader, we will expand ResMed’s portfolio of SaaS businesses outside of our current base in the US market and strengthen our position as a global leader in lower cost healthcare software solutions. and lesser acuity care,” ResMed CEO Mick Farrell said in the press release. “We are delighted to welcome the Medifox Dan team to our global ResMed family. Our management cultures are strongly aligned with a focus on reducing costs, improving outcomes and changing the course of chronic disease management. »

Goshal added that with Germany’s aging population and severe staffing shortages challenging German healthcare providers, the adoption of digital solutions is on the rise, and the two companies joining forces are “well positioned to help providers” in a range of care settings outside of the hospital.

“Medifox Dan helps people help others. We believe that the partnership with ResMed is a unique opportunity to deliver on this promise through the strategic prospects of an international player on an even larger scale in the future,” Schliebe and Städtler said. “Now we are part of a global company specializing in the digitization of the healthcare system. A major advantage of this agreement is the wide range of possibilities for an incredibly agile combination of a wide variety of services, which our customers will particularly benefit from in their daily care work.

“We look forward to taking this next development step together and continuing to support our customers in their daily work with innovative software solutions and services in the best possible way.”

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