ResMed Inc. (NYSE:RMD) agreed to sell its MatrixCare business on Tuesday to Frazier Healthcare Partners, a private equity firm focused exclusively on health care, for $490 million.
The move reflects ResMed’s 2030 strategy by focusing on high-growth, scalable opportunities in sleep health, breathing health and connected home-based healthcare.
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The divestiture also 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.
MatrixCare Business and Financial Impact
MatrixCare provides software solutions to more than 15,000 providers and supports skilled nursing; senior living and long-term care; life planning communities and home health and hospice care.
The transaction is expected to close during the first quarter of ResMed’s fiscal year 2027.
Based on preliminary financial results for the full fiscal year 2026, the MatrixCare business represented approximately $220 million of revenue and approximately $55 million of adjusted operating profit.
In addition to the MatrixCare business-related financial considerations, ResMed’s recently completed Noctrix acquisition is expected to contribute approximately $30 million of revenue and reduce adjusted earnings by approximately 20 cents per share in fiscal year 2027.
ResMed continues to expect its Residential Care Software segment to accelerate to high single-digit percentage year-over-year revenue growth, along with operating leverage, in fiscal year 2027.
William Blair Sees Long-Term Benefit Despite Near-Term EPS Dilution
William Blair on Thursday wrote that, “even after buybacks, the deal will likely still be somewhat dilutive to EPS, but the sale of MatrixCare will divest an underperforming asset that created investor concerns around the durability of growth.”
Analyst Brandon Vazquez’s estimate suggests MatrixCare contributed about 29 cents to EPS.
While management has not disclosed the deal’s EPS impact, it plans to use the proceeds for an accelerated share repurchase program to return capital to shareholders.
The transaction’s effect on fiscal 2027 EPS remains uncertain, and we currently forecast 10% EPS growth for the year.
“We suspect investors will still want to see improving results from here, but we think this is a solid first step in improving the results in a key category for ResMed,” wrote Vazquez.
William Blair maintains an Outperform rating.
Noctrix Acquisition Supports ResMed’s Growth Strategy
In June, ResMed acquired Noctrix Health for $340 million.
Noctrix, an Angelini Ventures portfolio company, focuses on sleep health and respiratory care.
Angelini Ventures invested in Noctrix Health in 2024 as part of the company’s $40 million Series C financing round.
RMD Stock Price Activity: ResMed shares were up 0.94% at $207.81 at the time of publication on Thursday, according to Benzinga Pro data.
Photo by B..Robinson via Shutterstock
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