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ResMed (RMD) Closes MatrixCare Buyout, Boosts SaaS Line

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Staying ahead of expectations, ResMed Inc. (RMD - Free Report) recently completed its $750 million acquisition of the privately held MatrixCare. This is a long-term post-acute care software, offering a complete solution for growing organizations that need to successfully manage risk in care delivery across the long-term post-acute care (LTPAC) spectrum.

Per the financial terms of the transaction, this acquisition is expected to be immediately accretive to ResMed’s adjusted earnings per share and its adjusted gross margin.

MatrixCare’s electronic health record (EHR) solution supports a wide range of long-term care settings that helps increase patient management efficiencies, delivering a superior clinical care. Its offerings include point of care, lead and referral management, claims processing plus payroll and nutrition management among others.

According to ResMed, this buyout will enhance its ability to improve patient transitions of care and provider efficiencies. Post the integration of MatrixCare, the company’s portfolio will comprise Brightree, HEALTHCAREfirst and MatrixCare. ResMed believes that this strategic move will streamline its transitions of care, creating better outcomes for patients, caregivers and out-of-hospital healthcare providers.

Post closure, MatrixCare will now continue to operate as a standalone business within ResMed’s SaaS portfolio with targeted commercial, technical and operating links to ResMed and Brightree. There will be no instant changes to the acquired entity’s management, locations or business processes. 

ResMed is currently seeking a treatment option for chronic lung disease patients, which will allow them to stay out of hospital by lending a high-quality life within the comfort zone of their own homes. By its own admission, such enhanced connected health solutions for out-of-hospital medical software market are aiding ResMed to continue with the favorable momentum.

Share Price Performance

In the past month, shares of ResMed have outperformed its industry. The stock has dipped 4.2% compared with the 6.7% decline of the industry.

Zacks Rank & Key Picks

ResMed has a Zacks Rank #3 (Hold). A few better-ranked stocks in the broader medical space are Stryker Corporation (SYK - Free Report) , Masimo Corporation (MASI - Free Report) and Veeva Systems (VEEV - Free Report) .

Stryker has estimated long-term earnings growth rate of 10% and a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Masimo’s long-term earnings growth rate is projected at 14.6%. The stock carries a Zacks Rank of 2.

Veeva Systems’ long-term earnings growth rate is projected at 19.3%. The stock is a Zacks #2 Ranked player.

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