Comprehensive M&A data with integrated detailed company information

ResMed to expand out-of-hospital presence with MatrixCare
Posted on Tuesday, 06 November 2018 14:49
ResMed has signed on the dotted line to pick up US-based long-term post-acute care group MatrixCare for USD 750.00 million in cash.

Shares in the buyer closed down slightly to USD 105.00, prior to the news being announced after the bell rang yesterday, which valued the business at around USD 14.96 billion.

The addition of MatrixCare is expected to expand ResMed’s out-of-hospital software portfolio into skilled nursing and senior living verticals, as well as enhancing its ability to improve patient transitions of care provider efficiencies.

Under the terms of the transaction, the acquiror will finance the deal primarily using its credit facility, with closing slated for the second quarter of 2019, subject to the usual raft of regulatory approvals.

The acquisition is expected to immediately boost non-generally accepted accounting principles (GAAP) gross margin and non-GAAP diluted earnings per share after completion and beyond.

RedMeds’ offer represents a multiple of 25.0x MatrixCare’s pro forma 2018 earnings before interest, taxes, depreciation and amortisation of USD 30.00 million.

The group is also due to post revenue of roughly USD 122.00 million at the end of the year and, following closing, will continue to operate as a standalone business within the buyer’s software-as-a-service portfolio.

MatrixCare is trusted by more than 13,000 facility-based care settings and over 2,500 home care, health and hospice organisations.

It helps nursing, senior living providers and life plan communities to connect and collaborate in the healthcare system, providing enterprise analytics, clinical decision support, and first care coordination.

ResMed is billed as a world leading health company with more than 6.00 million cloud-connected devices for remote patient monitoring.

In the opening three months of the group’s fiscal year ended 30th September 2018, it generated revenue of USD 588.30 million, up 12.0 per cent from USD 523.70 million in the corresponding period of 2017.

Net income for the first quarter totalled USD 105.70 million, compared to USD 86.10 million in the same timeframe last year.

© Zephus Ltd