ResMed to Buy German Software Company
ResMed says the $1 billion purchase of MEDIFOX DAN, which makes out-of-hospital software solutions, would help it expand its post-acute SaaS reach to the German market.
Sleep and respiratory therapy equipment and technology company ResMed entered a definitive agreement with software investor Hg to acquire MEDIFOX DAN, a German provider of out-of-hospital software solutions for providers in major care settings.
Under the agreement terms, ResMed will acquire MEDIFOX DAN for roughly $1 billion (€950 million), which ResMed said it expects to fund with its existing credit facilities. In the calendar year 2021, MEDIFOX DAN’s pro forma net revenue was approximately $83 million, with a pro forma adjusted EBITDA of approximately $35 million.
MEDIFOX DAN offers clinical, financial and operational software as a service (SaaS) solutions for processes such as care documentation, personnel planning, administration and billing. These are akin to offerings from ResMed’s U.S. SaaS brands, Brightree and MatrixCare, but for the German market.
The acquisition of MEDIFOX DAN builds on ResMed’s existing business in Germany as a provider of cloud-connected sleep therapy and respiratory devices.
“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. “… Our management cultures are highly aligned with a laser focus on lowering costs, improving outcomes, and changing the course of chronic disease management.
“We’re seeing greater adoption of digital solutions across Germany as its population continues to age and severe staffing shortages continue to challenge German care providers,” said ResMed SaaS President Bobby Ghoshal. “MEDIFOX DAN — and ResMed — are well-positioned to help providers across major out-of-hospital care settings meet rising demands and ultimately help improve patient outcomes.”
A statement from MEDIFOX DAN co-managing directors Dr. Thorsten Schliebe and Christian Städtler said they were looking forward to being part of a global company that could help their company take the “next step” in its development.
“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,” the statement noted.
MEDIFOX DAN is headquartered in Hildesheim, Germany, and employs over 600 people. ResMed plans for MEDIFOX DAN to operate under its current brand as Brightree and MatrixCare do.