Connected respiratory device maker ResMed signed a definitive agreement to acquire Medifox Dan, a German out-of-hospital software company, from software investor Hg for $1 billion (€950 million).
Medifox Dan provides tools for staffing plans, billing, care documentation and administration 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 clearance.
The company will continue to operate as its own brand, and ResMed plans to keep its employees, management structure and locations. Dr. Thorsten Schliebe and Christian Städtler, Medifox Dan’s co-managing directors, will stay in their roles and report to Bobby Ghoshal, ResMed’s software as a service (SaaS) president.
“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. 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,” Ghoshal said in a statement.
WHY IT MATTERS
During a call with investors, CEO Mick Farrell said ResMed has so far focused its SaaS business in the U.S., but Germany’s environment for digital health and its reimbursement opportunities make it an attractive market.
“We see it as a great opportunity to expand our capabilities from just a U.S.-centric SaaS business to truly starting to become a global one, and starting with our second-biggest market. And our biggest market in Europe, which is Germany,” he said.
THE LARGER TREND
This is far from ResMed’s first acquisition. The company acquired EHR maker MatrixCare in 2018 and post-acute software company Brightree in 2016, which both still operate as their own brands. ResMed has also acquired digital respiratory health company Propeller Health.
“People just want to age in place. People want to be treated in the home at best,” he said. “… And COVID has accelerated both those trends, the digital health adoption and the out-of-hospital healthcare.”