Updated with quotes from Brightree majority owner Battery.
ResMed (NYSE:RMD) said today it will pay $800 million to acquire cloud-based healthcare software company Brightree.
Atlanta, Ga.-based Brightree develops cloud-based software for home or durable medical equipment for home health and hospice care, with aims of improving clinical and business performance in the post-acute care industry. Global investment firm Battery invested in Brightree in 2008 and became the company’s majority owner.
“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 in a press release.
“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,” Brightree CEO Dave Cormack said in prepared remarks.
Under the agreement, ResMed will pay $800 million in cash for Brightree, funded primarily through debt, according to a press release. ResMed said it expects the transaction to be accretive to gross margins and non-GAAP diluted earnings per share after close.
“Software-as-a-service companies with strong, industry-specific products and top-notch management teams are consistently sought after by strategic acquirers – as evidenced by this deal,” Battery general partner and Brightree board member Neeraj Agrawa said in a prepared statement. “Battery is proud to have backed Brightree and we continue to be a big believer in cloud-based applications.”
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.
“Every company is becoming a software company today,” Battery general partner and Brightree board member Chelsea Stoner said in a press release.
Less than 3 weeks ago, ResMed closed its acquisition of oxygen therapy medical device company Inova Labs.
Financial and other terms and conditions of the acquisition were not announced. ResMed said the acquisition of the oxygen therapy-focused company would aid in its focus on treating chronic obstructive pulmonary disease.
The acquisition of Austin, Texas-based Inova Labs adds the LifeChoice Activox portable oxygen concentrator and Activox Duo2 fully-integrated oxygen concentrator system to ResMed’s portfolio of products, the company said.
Last October, ResMed closed its purchase of non-invasive sleep-disorder breathing and ventilation device maker Curative Medical for an undisclosed amount.
