ResMed to acquire German out-of-hospital software company Medifox Dan for $1 billion

Manufacturer of connected respiratory devices ResMed has signed a definitive agreement to acquire Medifox Dan, a German out-of-hospital software company, from software investor Hg for $1 billion (€950 million).

Medifox Dan provides tools for staffing plans, billing, care documentation, and administration for nursing homes, home health agencies, and outpatient therapy providers. The acquisition is expected to be completed by the end of the year, subject to regulatory clearance.

The company will continue to operate under its own brand and ResMed plans to retain its employees, management structure and locations. Dr Thorsten Schliebe and Christian Städtler, The co-CEOs of Medifox Dan, will remain in their roles and report to Bobby Ghoshal, President of ResMed Software as a Service (SaaS).

“We are seeing greater adoption of digital solutions across Germany as its population continues to age and severe staffing shortages continue to challenge German healthcare providers. Medifox Dan – and ResMed – are well positioned to help providers with key out-of-hospital care. meet growing demands and ultimately help improve patient outcomes,” Ghoshal said in a statement.

WHY IS IT IMPORTANT

On a call with investors, CEO Mick Farrell said ResMed has so far focused its SaaS business in the US, but Germany’s digital health environment and its the reimbursement possibilities make it an attractive market.

“We see this as a great opportunity to expand our capabilities from just a US-centric SaaS business to really start to become a global business, and starting with our second largest market. And our largest market in Europe , which is Germany,” he said.

THE GREAT TREND

This is far from ResMed’s first acquisition. Company acquired EHR maker MatrixCare in 2018 and post-acute software company Brightree in 2016, which still operate under their own brand. ResMed also acquired digital respiratory health company Propeller Health.

Like the United States, Germany runs a an aging population and a shortage of healthcare workers, Farrell said. The COVID-19 pandemic has also affected how people access health care.

“People just want to age in place. People want to be cared for at home at best,” he said. “…And COVID has accelerated those two trends, the adoption of digital health and out-of-hospital healthcare.”