ResMed closes $800m Brightree buy

ResMed (NYSE:RMD) said it closed the $800 million acquisition of cloud-based healthcare software company Brightree yesterday.

Atlanta, Ga.-based Brightree develops cloud-based software for home or durable medical equipment for home health and hospice care. Its majority owner was private equity shop Battery, which bought its stake in 2008.

“This acquisition furthers ResMed’s position as the leading tech-driven medical device company and gives our customers new tools to help them increase operational efficiency and improve cash-flow while delivering best-in-class patient care. ResMed is already the recognized global leader in remote patient monitoring and connected healthcare solutions. This acquisition will enable us to add to our portfolio of digital solutions to drive operational excellence and improve outcomes for patients, providers and payers,” ResMed CEO Mick Farrell said when the deal was announced in February.

“The Brightree team is very excited to join forces with ResMed to help post-acute care providers navigate the inherent complexities of the healthcare system and ensure that patients get the care they need,” added Brightree CEO Dave Cormack.

ResMed has said it expects the transaction to be accretive to gross margins and non-GAAP diluted earnings per share. Brightree reported net sales of $113 million and an EBITDA of approximately $43 million in 2015. Upon closure of the acquisition, Brightree will continue to operate as a separate entity under its current name, with headquarters remaining in Atlanta, and will be managed independently.

ResMed has been on an M&A tear of late, closing its acquisition of oxygen therapy company Inova Labs in February; in October 2015, the San Diego-based company closed its buyout of Curative Medical.