The San Diego-based respiratory care giant said it funded the buyout, which represents a 25x EBITDA multiple, using its credit facility. Bloomington, Minn.-based MatrixCare put up sales of $122 million last year, ResMed said.
“We’re all excited to have quickly closed this important deal and can officially welcome MatrixCare to the ResMed family,” ResMed CEO Mick Farrell said in prepared remarks. “ResMed is the world’s top tech-driven medical device company, and we are well on our way to being the top provider of out-of-hospital software. It all fits into our mission of changing millions of people’s lives, whether it’s by treating and preventing the advance of chronic disease or helping someone easily navigate out-of-hospital healthcare settings so they and their loved ones can live their best life.”
ResMed said the deal is expected to immediately add to its adjusted earnings per share. All stock buyback activity is set to stop after the deal closes, the company added. MatrixCare is due to run as a standalone business within ResMed’s SaaS operation, with MatrixCare CEO John Damgaard reporting to software-as-a-service president Raj Sodhi.