ResMed (NYSE:RMD) announced today that it agreed to acquire German software company Medifox Dan in a deal worth $1 billion.
Hildesheim, Germany-based Medifox Dan develops clinical, financial and operational software solutions for out-of-hospital care providers. Its offerings include care documentation, personnel planning, administration, billing and more.
According to a news release, Medifox Dan’s solutions are similar to those belonging to ResMed’s leading U.S. 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 expects to fund with its existing credit facilities.
ResMed expects the acquisition of the company, which recorded pro forma net revenue of approximately $83 million in calendar 2021, to be accretive to its adjusted diluted earnings per share after the close, which is earmarked for the end of the second quarter of ResMed’s fiscal 2023 (Dec. 31, 2022).
Medifox Dan’s more than 600 employees are expected to be retained, along with its management structure, locations and business processes. Co-managing directors Dr. Thorsten Schliebe and Christian Städtler will continue in their current roles, reporting to ResMed SaaS President Bobby Ghoshal, with Medifox Dan set 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 the customers of its own U.S.-based SaaS business, with the acquisition intended to build on ResMed’s existing business in Germany as a provider of innovative cloud-connected medical devices that transform care for patients with sleep apnea and other respiratory conditions.
“With the acquisition of Medifox Dan, a fast-growing and innovative German healthcare software leader, we will expand ResMed’s SaaS business portfolio outside our current base in the U.S. market and strengthen our position as the global leader in healthcare software solutions for lower-cost and lower-acuity care,” ResMed CEO Mick Farrell said in the news release. “We are excited to welcome the Medifox Dan team to our global ResMed family. Our management cultures are highly aligned with a laser focus on lowering costs, improving outcomes, and changing the course of chronic disease management.”
Goshal added that, with Germany’s population aging and severe staffing shortages challenging German care providers, digital solution adoption is on the rise, and the two companies joining forces are “well-positioned to help providers” across a range of care settings outside the hospital.
“Medifox Dan helps people to help people. We believe that the partnership with ResMed is a unique opportunity to fulfill this promise through the strategic perspectives of an international player on an even larger scale in the future,” Schliebe and Städtler said. “From now on, we are part of a global company that specializes in the digitization of the healthcare system. A major benefit of this deal is the wide range of possibilities for an incredibly agile combination of a wide variety of services, from which our customers will particularly benefit in their everyday care work.
“We look forward to taking this next development step together and continue to support our customers in their daily work with innovative software solutions and services in the best possible way.”