ResMed today announced a definitive agreement to acquire privately held MEDIFOX DAN, a German out-of-hospital software solutions company for providers in major settings across the care continuum. ResMed will be acquiring MEDIFOX DAN from Hg, a software and services investor.
MEDIFOX DAN’s clinical, financial, and operational solutions include care documentation, personnel planning, administration, billing, and more—similar to the solutions of ResMed’s US software as a solution (SaaS) brands, MatrixCare and Brightree.
MEDIFOX DAN’s German customer base is complementary to the customers of ResMed’s US-based SaaS business. In addition, the acquisition of MEDIFOX DAN builds on ResMed’s existing business in Germany as a provider of cloud-connected medical devices that transform care for patients with sleep apnea and other respiratory conditions.
Under the leadership of co-managing directors Thorsten Schliebe and Christian Städtler, the MEDIFOX DAN Group has continuously expanded its product and service portfolio, advanced into new market segments, invested in 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 poised to accelerate the digitization of healthcare as part of the ResMed global team.
“With the acquisition of MEDIFOX DAN, a fast-growing and innovative German healthcare software leader, we will expand ResMed’s SaaS business portfolio outside our current base in the US market and strengthen our position as the global leader in healthcare software solutions for lower-cost and lower-acuity care,” says Mick Farrell, ResMed CEO, in a release. “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,” says ResMed SaaS president Bobby Ghoshal, in a release. “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.”
“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. From now on we are part of a global company that specializes in the digitization of the healthcare 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,” say MEDIFOX DAN’s co- managing directors, in a release.
Stefan Margolis and Benedikt Joeris, both partners at Hg, say in a release, “It has been a great journey and partnership with Thorsten, Christian, and the whole MEDIFOX DAN team. We have long-recognized MEDIFOX DAN as a high-quality software business, providing crucial services to integrated care. Together we have significantly expanded MEDIFOX DAN’s offering through continued product investment and acquisitions. ResMed, whom we’ve known for many years, will be a great strategic owner to continue that innovation journey, enabling care givers to focus on people and patients.”
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.
Under the agreement terms, ResMed will acquire MEDIFOX DAN for approximately US$1.0 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 EBITDA of approximately $35 million.
The transaction is expected to close by the end of the second quarter of ResMed’s fiscal year 2023 (December 31, 2022), subject to regulatory clearances.
ResMed intends to retain MEDIFOX DAN’s employees, management structure, locations, and business processes.
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