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Highlights
- Post this acquisition, it is likely that a global leader will be created in out-of-hospital software solutions.
- The transaction is expected to be completed by the end of the second quarter of ResMed’s fiscal year 2023.
- ResMed is likely to retain the employees, management structure and co-managing directors of MEDIFOX DAN.
Medical device manufacturing company, ResMed Inc (ASX:RMD), has shared on Wednesday, that it will acquire MEDIFOX DAN for US$1.0 billion, under a definitive agreement. MEDIFOX DAN is a leader in out-of-hospital software solutions providers.
ResMed shares were spotted trading 1.747% down at AU$29.230 apiece at 2:24 PM AEST. The shares were in line with the benchmark index, ASX200 Healthcare, which dropped by approximately 1.322% to 38,591.00. Worth mentioning here is that the health care sector is one of the worst-performing sectors on the ASX (as of 2:00 PM AEST).
ResMed is a dual-listed company with its listing on NYSE and ASX. The company offers cloud-connected medical devices and digital health technologies that support people with sleep Apnoea or chronic diseases. The company also provides out-of-hospital software platforms that help people live healthy lives in their homes. ResMed is operating in more than 140 countries.
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The rationale behind the acquisition of MEDIFOX DAN
ResMed said in a statement that the solutions offered by MEDIFOX DAN are similar to those provided by Brightree and MatrixCare, a leading US SaaS brand of ResMed. This transaction is expected to accelerate the SaaS strategy of the company by extending its position as a leading provider of SaaS solutions in the US in out-of-hospital care settings into Germany.
Reportedly, the transaction would expand the solutions portfolio of ResMed into new healthcare sectors such as outpatient therapy.
Image source: © Rido | Megapixl.com
CEO of ResMed, Mick Farrell, said there is an alignment in the cultures of MEDIFOX DAN and ResMed, as both focus on improving outcomes and lowering costs. Moreover, both companies are on the same mission: to help people live a healthy life outside the hospital.
Bobby Ghoshal, ResMed Saas President, highlighted that:
Details of the transaction
According to the ASX-announcement, ResMed is expected to fund the acquisition through its existing credit facility. Subject to regulatory approvals, the transaction is expected to be completed by the second quarter of the fiscal year 2023.
In addition to this, ResMed presented its intention to retain the employees, locations, business processes and management structure of the acquired entity. The co-managing directors of MEDIFOX DAN, Christian Stadtler and Thorsten Schliebe will report SaaS president of ResMed, Bobby Ghoshal.
