Medical device leader ResMed has agreed to sell its MatrixCare software business, specializing in home and senior care management solutions, to private equity firm Frazier Healthcare Partners for $490 million in cash, aligning with its strategic focus on breathing health hardware and connected care.
- MatrixCare software sold for $490 million to Frazier Healthcare Partners
- Business generated $220 million revenue and $55 million operating profit in 2026 fiscal year
- Proceeds will fund share repurchases and corporate priorities
What happened
ResMed announced the sale of MatrixCare, its home-health and senior-care software business, to Frazier Healthcare Partners for $490 million in cash. The transaction includes the MatrixCare software suite as well as related offerings like HealthcareFirst and Citus. However, ResMed retains its Brightree unit in the US and MEDIFOX DAN business in Germany.
The deal is part of a broader trend where healthcare companies divest non-core software operations to focus on their primary expertise. MatrixCare serves the administrative needs of skilled nursing homes, home-health agencies, and hospices with systems for scheduling, record management, and billing.
Why it matters
This sale signals ResMed’s strategic intent to concentrate on its core hardware and connected home care devices, such as ventilators and sleep apnea masks. The company’s 2030 plan emphasizes sleep health, breathing health, and in-home connected care, viewing standalone software units as less aligned with these goals.
For Frazier Healthcare Partners, acquiring a profitable, recurring-revenue software provider embedded in a growing home and post-acute care market presents a valuable investment opportunity. The deal also reflects a more disciplined valuation environment for health software businesses, with the sale price being modest relative to recent high multiples.
What to watch next
Investors will look for how ResMed deploys the net proceeds from the sale, which are slated for accelerated share repurchases and general corporate use, signaling confidence in the company’s hardware and connected services growth trajectory.
The integration and future roadmap of MatrixCare under Frazier’s ownership remain to be seen, including potential changes to staffing or product development. This transaction fits within a broader movement where private equity consolidates healthcare software assets spun off by larger corporations.