MatrixCare, a Bloomington-based developer of electronic health record software, will be acquired for $750 million by a publicly traded holding company based in San Diego.
The company will be a stand-alone company under ResMed, whose companies make or sell devices and software that provide daily remote patient monitoring for conditions including sleep apnea, chronic obstructive pulmonary disease and other respiratory conditions.
The deal is expected to close by the end of the year.
"We're thrilled to be part of a global health care leader that shares our mission, leveraging technology to improve the quality of life for seniors and those who care for them," said MatrixCare CEO John Damgaard in a statement.
Damgaard is expected to continue in his current role and report to Raj Sodhi, ResMed's chief technology officer.
The 600-employee MatrixCare develops software that helps skilled nursing organizations, life-plan communities, senior living and private-care providers with information to develop a better care plan for patients. Its software is used by over 15,000 providers.
ResMed has about 6,000 employees and had annual revenue of $2.3 billion for its most recent fiscal year, which ended June 30.
The MatrixCare deal is expected to immediately contribute to ResMed's gross margin and earnings per share. For 2018, MatrixCare is expected to produce $122 million in revenue and earnings before interest, taxes, depreciation and amortization of $30 million.
This would be ResMed's 10th acquisition in the past four years and the largest since ResMed acquired Brightree LLC for $800 million in April 2016. Brightree, based in Lawrenceville, Ga., is a provider of cloud-based software to improve clinical and business performance in the post-acute care industry.