ResMed’s $490m MatrixCare sale: What it means

The ResMed Inc (ASX: RMD) share price is in focus as the company announces the $490 million sale of its MatrixCare business and plans to return capital to shareholders.

What did ResMed report?

• Entered into a definitive agreement to sell MatrixCare business for US$490 million in cash
• MatrixCare contributed approximately US$220 million in revenue and US$55 million in non-GAAP operating profit for FY26
• Proceeds to be used for an accelerated share repurchase program and general corporate purposes
• ResMed reaffirmed its guidance for FY26 margins, spending ratios, and planned share buybacks
• Recent Noctrix acquisition expected to add US$30 million in revenue but dilute FY27 EPS by around US$0.20

What else do investors need to know?

The sale is aligned with ResMed’s strategy to sharpen its focus on high-growth sleep, breathing, and connected care markets. The MatrixCare business, which serves over 15,000 care providers, will be acquired by Frazier Healthcare Partners, a healthcare-focused private equity firm.

ResMed and Frazier Healthcare Partners will enter into transition service agreements to support a smooth handover and offset costs in the first year after closing. ResMed aims to fully eliminate any remaining stranded costs over time.

What did ResMed management say?

Chairman and CEO Mick Farrell said:

Today’s announcement is about our disciplined approach to portfolio management and our commitment to driving long-term growth.

By focusing on areas where we see the greatest opportunity for sleep health innovation and impact, we are strengthening our ability to deliver life-changing health technologies, improve patient outcomes, and create value for our stakeholders. We are confident MatrixCare and its affiliated businesses will continue to support team members and drive growth under new ownership with a dedicated focus on the long-term care market.

What’s next for ResMed?

The MatrixCare transaction is expected to close in the first quarter of ResMed’s 2027 financial year, pending regulatory approvals. Proceeds from the sale will go towards a share buyback and general company purposes.

Looking ahead, ResMed expects its Residential Care Software segment to accelerate growth to high single digits in FY27, with improved operating leverage. The company will provide a detailed FY27 outlook during its next quarterly results in August 2026.

ResMed share price snapshot

Over the past year, ResMed shares have declined 20%, trailing the S&P/ASX 200 Index (ASX: XJO), which has risen 2% over the same period.

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The post ResMed’s $490m MatrixCare sale: What it means appeared first on The Motley Fool Australia.

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Motley Fool contributor Laura Stewart has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended ResMed. The Motley Fool Australia has positions in and has recommended ResMed. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips. This article was prepared with the assistance of Large Language Model (LLM) tools for the initial summary of the company announcement. Any content assisted by AI is subject to our robust human-in-the-loop quality control framework, involving thorough review, substantial editing, and fact-checking by our experienced writers and editors holding appropriate credentials. The Motley Fool Australia stands behind the work of our editorial team and takes ultimate responsibility for the content published by The Motley Fool Australia.