ResMed sells MatrixCare software unit to Frazier for $490 million

ResMed is selling its MatrixCare software unit to Frazier Healthcare Partners for $490 million in cash, a move that sharpens the San Diego company’s push into sleep, breathing and home-based care while stepping away from a business that sat outside its core device franchise.

ResMed said the divestment will leave it more focused on higher-growth parts of its portfolio, with MatrixCare continuing to operate inside ResMed until closing and no immediate changes planned for customer service or support. The company’s annual report showed two operating segments before the sale, Sleep and Breathing Health and Residential Care Software, underscoring how far MatrixCare sat from the core medical-device business. ResMed said the transaction is expected to close in the first quarter of fiscal 2027, subject to customary closing conditions and regulatory approvals.

The price marks a sharp reset from ResMed’s earlier wager on the business. ResMed bought MatrixCare in November 2018 for $750 million, meaning the new deal values the unit at about 35% less than the original purchase price. At the time of that acquisition, MatrixCare served more than 15,000 providers across skilled nursing, life plan communities, senior living and private duty, and ResMed said the software complemented its out-of-hospital software offerings. MatrixCare is based in Minnesota, and the unit has remained part of a wider ecosystem of post-acute and home-care technology.

Frazier, a private equity firm focused exclusively on healthcare, said MatrixCare supports more than 15,000 providers across skilled nursing, senior living, long-term care, life planning communities, and home health and hospice care. The buyer’s emphasis on continuity suggests the business is likely to stay intact as a standalone platform rather than be broken apart quickly. That matters in a market where software serving aging, chronic care and home-based services still attracts capital because it sits close to recurring revenue and essential workflows.

ResMed also used the announcement to highlight that it is still willing to invest, just with a tighter lens. The company said its recently completed Noctrix acquisition is expected to add about $30 million in revenue in fiscal 2027, while reducing adjusted earnings per share by about 20 cents. Together, the sale and the purchase point to a portfolio being reweighted around connected care, respiratory health and products tied more directly to long-term growth than to a broader care-management software mix.