USA – ResMed has announced that it agreed to acquire German software company Medifox Dan in a deal worth US$1 billion.
The new acquisition will allow ResMed to expand its SaaS business footprint outside the US and speed up the digital transformation of care in Germany.
Hildesheim, Germany-based Medifox Dan develops clinical, financial and operational software solutions for out-of-hospital care providers. Its offerings include care documentation, personnel planning, administration, billing and more.
According to a news release, Medifox Dan’s solutions are similar to those belonging to ResMed’s leading US SaaS brands, MatrixCare and Brightree.
Under the terms of the agreement, ResMed will acquire Medifox Dan from Hg, a software and services investor, for approximately US$1.0 billion (€950 million), which ResMed expects to fund with its existing credit facilities.
ResMed expects the acquisition of the company, which recorded pro forma net revenue of approximately US$83 million in calendar 2021, to be accretive to its adjusted diluted earnings per share after the close, which is earmarked for the end of the second quarter of ResMed’s fiscal 2023 (Dec. 31, 2022).
Medifox provides software to over 8,000 customers and about 100,000 users.
The purchase is one of a few mergers and acquisition deals in the medical device industry this year. Still, it continues a pattern of medtech companies making acquisitions that include software platforms.
Medifox’s more than 600 employees are expected to be retained, along with its management structure, locations and business processes, according to a press release.
Co-managing directors Dr. Thorsten Schliebe and Christian Städtler will continue in their current roles, reporting to ResMed SaaS President Bobby Ghoshal, with Medifox Dan set to operate under its current brand within the ResMed SaaS business as Brightree and MatrixCare do.
Resmed’s release said Medifox Dan’s German customer base is complementary to the customers of ResMed’s US-based software as a service (SaaS) business.
The acquisition is intended to build on ResMed’s existing business in Germany as a provider of innovative cloud-connected medical devices that transform care for patients with sleep apnea and other respiratory conditions.
“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 in the news release.
With Germany’s population aging and severe staffing shortages challenging German care providers, digital solution adoption is on the rise, and the two companies joining forces are “well-positioned to help providers” across a range of care settings outside the hospital.