ResMed sells its MatrixCare software business to Frazier for $490m

ResMed has agreed to sell MatrixCare, its home-health and senior-care software business, to the private equity firm Frazier Healthcare Partners for $490m in cash. The deal lets the medical-device maker part with a unit it had owned for years to focus on the machines that remain its core.

MatrixCare is a decent-sized business in its own right, bringing in about $220m of revenue in ResMed’s 2026 fiscal year and roughly $55m of non-GAAP operating profit. The sale sits alongside a wider wave of software carve-outs, echoing deals such as Ametek’s purchase of Indicor’s instrumentation businesses, where buyers pick up mature units their sellers no longer see as central.

The transaction covers MatrixCare and the software historically sold under that brand, including HealthcareFirst and Citus, along with ResMed’s home-health and hospice offerings. It leaves out two businesses the company is keeping, its US-based Brightree unit and MEDIFOX DAN in Germany.

For Frazier, a healthcare-focused investor, the appeal is a profitable software provider embedded in the growing market for home and post-acute care. Those systems sit at the administrative heart of how care providers schedule visits, manage records and get paid.

MatrixCare’s software runs the back office of skilled nursing homes, home-health agencies and hospices, the kind of unglamorous record-keeping that providers cannot operate without. It is a steady, recurring-revenue business, which is exactly what makes it attractive to a private equity buyer and less essential to a devices company.

ResMed’s core, by contrast, is hardware. The company is best known for the machines and masks used to treat sleep apnoea and other breathing conditions, a market it has led for years and one it clearly sees as its future.

ResMed framed the sale as part of a strategy it calls its 2030 plan, which centres on sleep health, breathing health and connected care delivered in the home. Stripping out a software unit that fits awkwardly with that focus is the point of the deal rather than a side effect.

The money is heading back to shareholders. ResMed said it plans to use net proceeds to return capital, including through an accelerated share repurchase programme, with the rest going to general corporate purposes.

That choice says something about where ResMed sees its best returns. Rather than plough the cash into new software bets, it would rather buy back its own stock and double down on the hardware and services it knows.

Software has been a mixed inheritance for the company. It built up a suite of tools to wrap around its devices and data, but running standalone applications for third-party care providers is a different business from selling ventilators and masks.

Private equity, meanwhile, continues to hoover up exactly these kinds of assets. The pattern runs across the market, from health insurers such as Alan bundling AI into prevention cover to investor-backed roll-ups assembling software portfolios out of unloved divisions.

The deal is expected to close in the first quarter of ResMed’s 2027 fiscal year, subject to the usual conditions. Neither side has said how MatrixCare’s staff or product roadmap will be handled once it changes hands.

The price also offers a read on how the market values health software right now. At $490m against about $220m of revenue, the sale lands well below the frothy multiples such assets fetched a few years ago, a sign that buyers have grown more disciplined.

For ResMed, the sale is a tidy piece of portfolio housekeeping ahead of a period in which it wants investors focused on its devices and its connected-care ambitions. What it does with a leaner, more focused business is the part still to be written.