ResMed plans to acquire Germany-based health-software company MediFox Dan for about $1 billion (950 million euros) to boost its software-as a-service (SaaS) business and expand outside of the U.S.
MediFox makes software for providers of out-of-hospital care, which includes care documentation, personnel planning, administration and billing.
ResMed is acquiring the company from private-equity firm Hg. MediFox had pro forma net revenue of about $83 million last year, according to ResMed.
MediFox provides software to over 8,000 customers and about 100,000 users, according to Hg’s website. The deal is expected to close by the end of ResMed’s fiscal second quarter, which end Dec. 31.
KeyBanc Capital Markets analysts wrote in a note on Tuesday that while the acquisition will allow ResMed to expand its SaaS business internationally, the valuation appears elevated and MediFox’s incoming revenue “seems relatively small compared to broader [ResMed.]”
“We believe investors will view the deal as a strategic positive but not as a major catalyst for the stock,” the analysts wrote.
The purchase is one of a few M&A deals in the medical device industry this year. Still, it continues a pattern of medtech companies making acquisitions that include software platforms. Becton Dickinson announced on June 6 plans to acquire pharmacy automation company Parata for $1.53 billion, while Stryker said in January that it will buy Vocera Communications for $2.97 billion.