ResMed Sells MatrixCare for $490 Million to Sharpen Focus on Sleep Tech

Strategic Divestment of MatrixCare

ResMed Inc. (ASX:RMD, NYSE:RMD) has agreed to sell its MatrixCare business to private equity firm Frazier Healthcare Partners for $490 million in cash, marking a decisive step in its 2030 strategy to concentrate on sleep and connected home healthcare. The transaction, expected to close in the first quarter of fiscal 2027 pending regulatory approval, signals ResMed's intent to sharpen its portfolio around high-growth, scalable opportunities in sleep health and breathing care.

MatrixCare, which supports over 15,000 providers in skilled nursing, senior living, and home health services, contributed approximately $220 million in revenue and $55 million in non-GAAP operating profit in fiscal 2026. Despite its solid performance, ResMed views the divestiture as a way to reallocate capital and resources toward innovation and operational scale in its core connected care ecosystem.

Capital Return and Operational Transition

ResMed plans to deploy the net proceeds from the sale primarily to return capital to shareholders, including through an accelerated share repurchase (ASR) program, alongside general corporate purposes. The company expects to enter into transition services agreements with Frazier to maintain operational continuity and offset stranded costs in the first year post-sale, with a commitment to progressively eliminate any residual costs.

This move follows a period of robust growth for ResMed, which posted 11% revenue increases and margin expansion in recent quarters, bolstered by strong demand across its sleep and breathing health segments and investments in AI-driven innovation. The sale of MatrixCare dovetails with these trends, allowing ResMed to focus on segments with higher growth potential and operational leverage.

Outlook and Financial Impact

Alongside the MatrixCare divestiture, ResMed's recently completed acquisition of Noctrix is expected to add about $30 million in revenue but reduce non-GAAP diluted EPS by approximately $0.20 in fiscal 2027. The company continues to anticipate high single-digit revenue growth in its Residential Care Software segment, with improving operating leverage.

Investors can expect a full fiscal year 2027 outlook during ResMed's fourth quarter earnings call scheduled for August 6, 2026. Meanwhile, the company reiterates its fiscal 2026 guidance on margins, SG&A, R&D, tax rates, net interest income, and planned share repurchases, maintaining a steady course amid this portfolio reshaping.