ResMed has entered into a definitive agreement to sell its MatrixCare business to Frazier Healthcare Partners for $490 million in all-cash, marking a strategic pivot to return capital to shareholders while reshaping its portfolio. The transaction, expected to close in the first quarter of fiscal 2027 subject to regulatory approvals, signals ResMed’s intention to refocus on higher-growth segments. The company intends to deploy the proceeds through an accelerated share repurchase program and for general corporate purposes, providing direct value back to shareholders while maintaining financial flexibility.
The MatrixCare business represents approximately $220 million in revenue and roughly $55 million in non-GAAP operating profit based on preliminary fiscal 2026 results. This roughly 25 percent non-GAAP operating margin on the business highlights that ResMed is divesting a reasonably profitable asset, suggesting the company sees greater value creation opportunities elsewhere or views the software business as non-core to its strategic direction. The sale follows ResMed’s recent acquisition of Noctrix, which the company expects to contribute approximately $30 million in revenue during fiscal 2027, though it will initially create a headwind of approximately $0.20 per diluted share.
ResMed and Frazier Healthcare Partners plan to establish transition services agreements to support business continuity across systems, processes, and operations immediately following closing. Management expects these agreements to largely offset stranded costs in the first year after the sale, with the company committed to mitigating and eliminating any remaining stranded costs over time. This structured approach to the transition limits the financial disruption often associated with divestitures and preserves customer relationships during the handover.
The company continues to expect its Residential Care Software segment to accelerate to high single digit percentage year-over-year revenue growth with operating leverage in fiscal 2027. ResMed has reiterated its full year fiscal 2026 guidance on gross margins, SG&A spending, R&D investment, and tax rates. The full fiscal 2027 outlook will be provided on the company’s fourth quarter earnings call on August 6, 2026, offering clarity on the combined impact of the MatrixCare divestiture, Noctrix integration, and expected acceleration in the core RCS business. The announcement has been flagged as material and price sensitive by the ASX.
View the full ASX announcement (PDF)
About ResMed Inc (ASX: RMD)
ResMed Inc develops and manufactures medical devices and cloud-based software for diagnosing, treating, and managing respiratory disorders including sleep apnea, chronic obstructive pulmonary disease, and neuromuscular disease. The company supplies flow generators, masks, and accessories globally, with the majority of revenue derived from operations in the Americas. ResMed also pursues digital health initiatives and acquisitions to enhance clinical data offerings for patients, healthcare providers, and payers in out-of-hospital settings.
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