Manufacturer of connected respiratory equipment ResMed signed a definitive agreement to acquire Medifox Dan, a German outpatient software company, from software investor Hg for $1 billion (€950 million).
Medifox Dan provides tools for staffing, billing, care documentation, and management for nursing homes, home health agencies, and outpatient therapy providers. The acquisition is expected to close by the end of the year, subject to regulatory requirements.
The company will continue to operate as its own brand, and ResMed plans to keep the same staff, management structure, and location. Dr. Thorsten Schliebe and Christian Städtler, Medifox co-directors Dan, will retain his role and report to Bobby Ghoshal, President of Software as a Service (SaaS) ResMed.
“We are seeing greater adoption of digital solutions across Germany as the population continues to age and severe staffing shortages continue to challenge care providers. of Germany, Medifox Dan – and ResMed – are well-positioned to help care providers outside of the major hospital Ghoshal said in a statement.
WHY IT IMPORTANT
On a call with investors, CEO Mick Farrell said ResMed has so far focused on its SaaS business in the US, but Germany’s environment for digital health and chance of return making it an attractive market.
“We see this as a great opportunity to expand our capabilities from a US-only SaaS business to really starting to become a global business and starting with our second largest market.” And our biggest market in Europe is Germany,” he said.
TREND TO BIGGER
This is a far cry from ResMed’s first acquisition. The company acquired the manufacturer EHR MatrixCare 2018 and post-acute software company Brighttree in 2016, both still operate as their own brands. ResMed also acquired digital respiratory health company Propeller health.
“People just want to age in place. People want the best treatment in the house,” he said. “…And COVID has driven both of those trends, the adoption of digital health and out-of-hospital healthcare.”