ResMed to buy German software business 

SAN DIEGO – ResMed has announced plans to acquire MEDIFOX DAN, a Hildesheim, Germany-based leader in out-of-hospital software solutions for providers in major settings across the care continuum, from Hg, a leading software and services investor, for about $1 billion. 

Like ResMed’s U.S. Saas brands, MatrixCare and Brightree, MEDIFOX DAN’s clinical, financial and operational solutions are mission-critical for out-of-hospital care providers for care documentation, personnel planning, administration, billing and more, ResMed says. 

“With the acquisition of MEDIFOX DAN, 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 health care software solutions for lower-cost and lower-acuity care,” said Mick Farrell, ResMed CEO. “We are excited to welcome the MEDIFOX DAN team to our global ResMed family: Our management cultures are highly aligned with a laser-focus on lowering costs, improving outcomes, and changing the course of chronic disease management. MEDIFOX DAN has a strong track record of innovation, fully aligned with our teams at Brightree, MatrixCare, and beyond. MEDIFOX DAN’s customer centricity has built strong and ongoing, growing demand for its software solutions across Germany, and we expect that momentum to continue and strengthen as we become one global team. Our MEDIFOX DAN and ResMed teams are united with the same global mission: to help many hundreds of millions of people live healthier lives outside the hospital, and preferably in their own home.” 

ResMed plans for MEDIFOX DAN to operate under its current brand within the ResMed SaaS business, like MatrixCare and Brightree. It intends to retain MEDIFOX DAN’s 600 employees, management structure, locations and business processes. MEDIFOX DAN co-Managing Directors Dr. Thorsten Schliebe and Christian Städtler will continue in their current roles, reporting to ResMed SaaS President Bobby Ghoshal. 

Under the agreement terms, ResMed expects to fund the acquisition with its existing credit facilities. In calendar year 2021, MEDIFOX DAN’s pro forma net revenue was approximately $83 million, with a pro forma adjusted EBITDA of approximately $35 million. 

The transaction is expected to close by the end of the second quarter of ResMed’s fiscal year 2023 (Dec.31, 2022), subject to regulatory clearances, and is expected to be accretive to its non-GAAP diluted earnings per share after close. 

ResMed bought Brightree in 2016. It bought MatrixCare in 2018.