ResMed to pay $800m for cloud-based software firm Brightree

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 performane in the post-acute care industry.

“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.

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.

“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.

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 Atlant, and will be managed independently.

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.

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