ResMed Inc Agrees to Sell MatrixCare for US$490M to Frazier
ResMed agrees to sell MatrixCare for US$490 million
ResMed (NYSE: RMD, ASX: RMD) has entered into a definitive agreement to sell its MatrixCare business to Frazier Healthcare Partners for US$490 million in an all-cash transaction, subject to certain closing adjustments, the health technology company announced on 7 July 2026 (with the underlying event dated 30 June 2026).
The ResMed MatrixCare sale sharpens the company’s focus in line with its 2030 strategy, which centres on high-growth opportunities across sleep health, breathing health and connected home-based care. The divestiture is expected to close during the first quarter of ResMed’s fiscal year 2027, subject to required regulatory approvals and customary closing conditions.
For ASX-listed investors, the transaction is directly relevant given ResMed’s dual listing on both the New York Stock Exchange and the ASX under the ticker RMD.
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Inside the deal: what’s being sold and for how much
The buyer, Frazier Healthcare Partners, is a private equity firm focused exclusively on the healthcare industry. Founded in 1991, Frazier has raised over US$11 billion of capital across its private funds and co-investment opportunities and has invested in more than 200 companies over 35 years.
The transaction covers MatrixCare and related software offerings historically sold under the MatrixCare brand, including Healthcare First, Citus, and home health and hospice solutions. It notably excludes ResMed’s other software businesses, Brightree in the US and MEDIFOX DAN in Germany.
MatrixCare provides software solutions to more than 15,000 providers, supporting skilled nursing, senior living and long-term care, life planning communities, and home health and hospice care.
Continuity is a feature of the arrangement. Until closing, MatrixCare will continue to operate as part of ResMed, with no changes to customer service or support.
| Metric | Detail |
|---|---|
| Consideration | US$490M all-cash (subject to closing adjustments) |
| Buyer | Frazier Healthcare Partners |
| Expected close | Q1 FY2027 |
| Providers served | 15,000+ |
| FY2026 revenue contribution | ~US$220M |
The financial picture: what ResMed keeps and gives up
Based on preliminary financial results for the full fiscal year 2026, the MatrixCare business represented approximately US$220 million of revenue and approximately US$55 million of non-GAAP operating profit. Divesting a profitable unit of this scale gives investors a clear measure of the trade-off ResMed is making in the name of focus.
Management has set out how the proceeds will be deployed and how transition risks will be managed:
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ResMed intends to use net proceeds to return capital to shareholders, including through an accelerated share repurchase (ASR) program, and for general corporate purposes.
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Transition services agreements (TSAs) with Frazier are expected to largely offset stranded costs in the first year post-closing, with any remaining stranded costs intended to be mitigated and eliminated over time.
Separately, and distinct from the MatrixCare divestiture, ResMed’s recently completed Noctrix acquisition is expected to contribute approximately US$30 million of revenue and reduce non-GAAP diluted EPS by approximately US$0.20 in fiscal year 2027.
Understanding the strategy: why divest a profitable business?
Disciplined portfolio management refers to a company regularly reviewing its mix of businesses and selling assets that are healthy but no longer central to its long-term direction. A divestiture is simply the sale of such an asset, freeing up capital to concentrate where management sees the strongest growth.
MatrixCare operates in post-acute care software, which serves providers of skilled nursing, senior living and hospice care. That market is strategically distinct from ResMed’s core focus on sleep health, breathing health and connected home-based care.
By parting with a stable business generating roughly US$55 million in non-GAAP operating profit, ResMed is signalling a preference for higher-growth, scalable segments over diversified revenue. For investors, it represents a deliberate bet on focus.
Mick Farrell, Chairman and CEO of ResMed
“Today’s announcement is about our disciplined approach to portfolio management and our commitment to driving long-term growth,” said Mick Farrell, Chairman and CEO of Resmed. “By focusing on areas where we see the greatest opportunity for sleep health innovation and impact, we are strengthening our ability to deliver life-changing health technologies, improve patient outcomes, and create value for our stakeholders. We are confident MatrixCare and its affiliated businesses will continue to support team members and drive growth under new ownership with a dedicated focus on the long-term care market.”
Frazier framed the acquisition as a long-term commitment to the sector. “We are thrilled to partner with the MatrixCare team and plan to invest aggressively in product innovation to help providers deliver better outcomes as the post-acute care landscape continues to evolve,” said Ryan Lucero, General Partner at Frazier Healthcare Partners.
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What’s next: outlook and key dates
ResMed continues to expect its Residential Care Software (RCS) segment to accelerate to high single digit percentage year-over-year revenue growth, along with operating leverage, in fiscal year 2027. Full FY2027 guidance is scheduled to accompany the company’s fourth quarter fiscal year 2026 earnings call.
The company also reiterated its full-year FY2026 outlook for non-GAAP gross margin, non-GAAP SG&A as a percentage of revenue, R&D as a percentage of revenue, and non-GAAP tax rate, as provided on its third quarter FY2026 earnings call on 30 April 2026. ResMed likewise reiterated its Q4 FY2026 outlook for net interest income and planned share repurchases.
Key upcoming catalysts for investors:
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Transaction close — Q1 FY2027
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Q4 FY2026 earnings call and full FY2027 outlook — 6 August 2026
The ResMed divestiture brings together the three threads of the current investment thesis: a sharper strategic focus, capital return to shareholders, and a reallocation of resources toward higher-growth core segments.
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