SAN DIEGO & HILDESHEIM, Germany (June 14, 2022)—ResMed today announced a definitive agreement to acquire privately held MEDIFOX DAN, a German provider of out-of-hospital software solutions for providers in major settings across the care continuum, from Hg, a software and services investor.
Under the agreement terms, ResMed will acquire MEDIFOX DAN for approximately U.S. $1 billion (€950 million), which ResMed expects to fund with its existing credit facilities. In calendar year 2021, MEDIFOX DAN’s pro forma net revenue was approximately $83 million, with a pro forma adjusted earnings before interest, tax, depreciation and amortization (EBITDA) of approximately $35 million.
MEDIFOX DAN’s clinical, financial and operational solutions are mission-critical for those out-of-hospital care providers, including care documentation, personnel planning, administration, billing and more—similar to the solutions of ResMed’s U.S. software-as-a-service (SaaS) brands, MatrixCare and Brightree.
MEDIFOX DAN’s German customer base is complementary to the customers of ResMed’s U.S.-based SaaS business. In addition, the acquisition of MEDIFOX DAN builds on ResMed’s existing business in Germany as a leading provider of innovative cloud-connected medical devices that transform care for patients with sleep apnea and other respiratory conditions.
Under the leadership of Co-Managing Directors Dr. Thorsten Schliebe and Christian Städtler, the MEDIFOX DAN Group has continuously expanded its innovative product and service portfolio, advanced into new market segments, invested in a state-of-the-art system landscape and digital sales capacities, and made strategic acquisitions. With the market launch of the new software generations MD Outpatient and MD Inpatient, MEDIFOX DAN is setting new standards for the future of care and poised to accelerate the digitization of health care as part of the ResMed global team.
“With the acquisition of MEDIFOX DAN, a fast-growing and innovative German health care software leader, we will expand ResMed’s SaaS business portfolio outside our current base in the U.S. market and strengthen our position as the global leader in health care software solutions for lower-cost and lower-acuity care,” said Mick Farrell, ResMed CEO. “We are excited to welcome the MEDIFOX DAN team to our global ResMed family. Our management cultures are highly aligned with a laser-focus on lowering costs, improving outcomes and changing the course of chronic disease management. MEDIFOX DAN has a strong track record of innovation, fully aligned with our teams at Brightree, MatrixCare and beyond. MEDIFOX DAN’s customer centricity has built strong and ongoing, growing demand for its software solutions across Germany, and we expect that momentum to continue and strengthen as we become one global team. Our MEDIFOX DAN and ResMed teams are united with the same global mission: to help many hundreds of millions of people live healthier lives outside the hospital, and preferably in their own home.”
“I’m excited about this landmark union between ResMed and MEDIFOX DAN, and the tremendous opportunities it unlocks for thousands of providers and millions of patients,” said ResMed SaaS President Bobby Ghoshal. “We’re seeing greater adoption of digital solutions across Germany as its population continues to age and severe staffing shortages continue to challenge German care providers. MEDIFOX DAN—and ResMed—are well positioned to help providers across major out-of-hospital care settings meet rising demands and ultimately help improve patient outcomes.”
ResMed intends to retain MEDIFOX DAN’s employees, management structure, locations, and business processes. Schliebe and Städtler will continue in their current roles, reporting to ResMed SaaS President Bobby Ghoshal.
"MEDIFOX DAN helps people to help people. We believe that the partnership with ResMed is a unique opportunity to fulfill this promise through the strategic perspectives of an international player on an even larger scale in the future,” said Schliebe and Städtler in a joint statement. “From now on we are part of a global company that specializes in the digitization of the health care system. A major benefit of this deal is the wide range of possibilities for an incredibly agile combination of a wide variety of services, from which our customers will particularly benefit in their everyday care work. We look forward to taking this next development step together and continue to support our customers in their daily work with innovative software solutions and services in the best possible way.”
MEDIFOX DAN is headquartered in Hildesheim, Germany, and employs over 600 people. ResMed plans for MEDIFOX DAN to operate under its current brand within the ResMed SaaS business—as Brightree and MatrixCare do today.
The transaction is expected to close by the end of the second quarter of ResMed’s fiscal year 2023 (Dec. 31, 2022), subject to regulatory clearances. Evercore is serving as ResMed’s financial advisor and DLA Piper is serving as ResMed’s legal advisor.
Visit resmed.com for more information.
