ResMed Closes MatrixCare Sale and Turns Cash Into Buybacks

ResMed closed the $490 million sale of its MatrixCare software unit to Frazier Healthcare Partners on September 1, 2026. The same week it sent most of that cash toward a $450 million accelerated share repurchase with Citibank.

The price is $260 million below the $750 million ResMed paid in 2018, when it still talked about becoming a top out-of-hospital software company. The round trip is now complete, and the money is going back to stockholders rather than into another software deal.

The $490 Million Sale Closed on September 1

ResMed and Frazier signed a definitive agreement to sell MatrixCare on June 30, 2026 and announced it on July 7. Closing landed on the first day of September, inside the first quarter of ResMed’s fiscal 2027, which runs from July through September.

The deal was all cash, subject to closing adjustments. MatrixCare sells cloud electronic health records and revenue-cycle tools to more than 15,000 providers in skilled nursing, senior living, long-term care, life plan communities, home health and hospice. Frazier, a Seattle firm that invests only in health care, now owns that stack as a standalone company.

Mick Farrell, ResMed’s chairman and chief executive, framed the sale as portfolio discipline. “Today’s announcement is about our disciplined approach to portfolio management and our commitment to driving long-term growth,” he said when the deal was announced. He added that MatrixCare would keep supporting its staff and customers under owners focused on long-term care.

WHAT LEFT WITH FRAZIER, AND WHAT DID NOT

• Included: MatrixCare plus software historically sold under that brand, including Healthcare First, Citus, and home health and hospice products.
• Excluded: Brightree in the United States, which serves home medical equipment providers, and MEDIFOX DAN in Germany.
• Bridge: Transition services deals are meant to cover systems and day-to-day work and to offset most stranded costs in the first year after closing.

A July 7 current report put MatrixCare at about $220 million of revenue and about $55 million of non-GAAP operating profit for fiscal 2026, based on preliminary results. That is a 25% operating margin on the non-GAAP measure the company used to sell the deal. Against ResMed’s $5.65 billion in fiscal 2026 sales, the unit was a small slice of the company and a large slice of its software line.

ResMed Paid $750 Million for the Same Platform in 2018

ResMed completed the MatrixCare purchase on November 14, 2018, for $750 million, taking the company from OMERS Private Equity. At the time, deal materials put 2018 net revenue at about $122 million and EBITDA at about $30 million, or roughly 6.1 times sales and about 25 times EBITDA.

Farrell’s close statement then pointed at a much larger software identity. “ResMed is the world’s top tech-driven medical device company, and we are well on our way to being the top provider of out-of-hospital software,” he said. MatrixCare was supposed to sit beside Brightree, bought in 2016, and HEALTHCAREfirst, bought in 2018, as one patient record across home and facility care.

Eight fiscal years later the same franchise left at 2.2 times fiscal 2026 sales and 8.9 times that $55 million of non-GAAP operating profit. Revenue did rise about 80% from the 2018 run rate. The multiple did not follow it up.

MATRIXCARE THEN AND NOW

The annual report for the year ended June 30, 2026, helps explain why the software thesis thinned out. Residential Care Software sales were $676 million, up 5% as reported and 4% in constant currency, with growth in MEDIFOX DAN, home and hospice, and home medical equipment. That gain was partly offset by weaker performance in senior living and long-term care, MatrixCare’s home turf. Sleep and breathing health did $4.98 billion of the $5.65 billion company total. The device core was still the company.

Frazier Puts a Dedicated CEO in Bloomington

Frazier has raised more than $11 billion since 1991 and says it has invested in more than 200 companies. Its public portfolio page lists MatrixCare as a current holding for 2026, based in Bloomington, Minnesota, with Ryan Lucero, Clarissa Berman and three other Frazier partners on the account. Lucero had been looking at post-acute technology for several years before this check was written.

Frazier has spent several years evaluating the post-acute care technology sector and believes MatrixCare has established itself as a leading platform serving skilled nursing, senior living, and home health and hospice providers. We are excited to partner with the MatrixCare team and to invest in the product innovation and capabilities customers need as the post-acute care landscape continues to evolve.

Ryan Lucero, General Partner, Frazier Healthcare Partners, closing statement

On the close date Frazier named Jonathan Lujan chief executive. Lujan had been an executive in residence at the firm. He previously ran Sight Growth Partners, an ophthalmology management company, and held operating jobs at DaVita’s Lifeline Vascular Care, Surgical Information Systems, GE Healthcare and J.P. Morgan’s health-care banking group. Clarissa Berman, a Frazier principal, said his job is continuity through the handoff and the next phase of growth.

Lujan’s own close line treated the product as daily infrastructure, not a side app. “MatrixCare has built a trusted platform with a strong market position and a critical role in the daily operations of post-acute care providers,” he said. Michael Gray, vice president of information technology and compliance officer at Eliza Jennings, a Cleveland senior-living operator, put the same idea more bluntly after the July announcement: private equity is buying the systems operators actually run their buildings on, not vanity software.

That stickiness cuts both ways. Staff learn one charting system and keep it; a competing software firm has even described nurses leaving a building that switches away from MatrixCare because the muscle memory is that strong. A platform that expensive to rip out should have commanded a richer multiple. Frazier is paying 2.2 times sales for software that is hard to fire, which is the bet. ResMed is the seller that no longer wanted to fund it against sleep-device growth.

Brightree and MEDIFOX DAN Remain With ResMed

The sale does not take ResMed out of software. Brightree stays as the U.S. platform for durable and home medical equipment providers, the channel that already bills, ships and supports the company’s masks and machines. MEDIFOX DAN stays as the German residential-care platform. Those two lines sit closer to sleep therapy, home devices and connected care than a skilled-nursing electronic record does.

ResMed told investors the remaining Residential Care Software group should return to high-single-digit revenue growth in fiscal 2027, with operating leverage, once MatrixCare is out of the mix. That target only works if the lagging senior-living and long-term-care vertical was the drag, and if Brightree and MEDIFOX DAN keep compounding. The July current report also flagged the Noctrix Health purchase, a restless-legs therapy deal with a $340 million gross price, as about $30 million of fiscal 2027 revenue and about $0.20 of non-GAAP earnings-per-share dilution. Capital that used to sit in post-acute records is being pointed at sleep-adjacent therapy instead.

Fiscal 2026 still looked like a device company that throws off cash. Constant-currency sales rose 8%, non-GAAP diluted earnings per share rose 17%, and free cash flow exceeded $1.6 billion. The company already returned more than $1 billion to stockholders that year, up more than 70% from the prior year. MatrixCare was never going to move those totals. It could only slow the software print and compete for management time.

Sale Proceeds Fund a $450 Million Buyback

On August 31, 2026, the day before MatrixCare changed hands, ResMed signed a $450 million accelerated share repurchase with Citibank, N.A. The filing says the company will fund it with MatrixCare proceeds and cash on hand, under a board authorization for 20,000,000 shares first approved in February 2014. Almost the entire headline sale is being turned into fewer shares, with cash making up any gap.

HOW THE CASH MOVED

1. June 30, 2026: Signs the MatrixCare sale agreement with Frazier for $490 million in cash.
2. July 7, 2026: Announces the deal and says net proceeds will return capital, including through an accelerated repurchase.
3. August 6, 2026: Builds the repurchase into fiscal 2027 guidance on the fourth-quarter earnings call.
4. August 31, 2026: Signs the $450 million Citibank accelerated repurchase.
5. September 1, 2026: Closes the MatrixCare sale.
6. September 3, 2026: Pays Citibank $450 million and takes an initial delivery equal to 80% of that sum divided by the September 2 closing price.
7. December 2026: Final settlement is scheduled, based on the average daily volume-weighted price minus a discount, unless Citibank finishes earlier.

The October 1 proxy statement, filed after the close, puts the buyback in a larger capital-return plan. ResMed expects to repurchase about $1.5 billion of stock in fiscal 2027, including the accelerated deal, and to return more than $1.85 billion in total, with a 10% dividend increase to $0.66 a share. “We are primarily using the proceeds of MatrixCare transaction for an accelerated share repurchase (ASR) agreement,” the chairman’s letter says.

That is the settlement of the 2018 software bet in cash-flow terms. ResMed did not roll the $490 million into another records platform. It bought its own shares, raised the dividend, and kept the software that still touches home equipment.

What Changes for MatrixCare’s 15,000 Providers?

Until September 1, MatrixCare ran as part of ResMed, with no advertised change in customer support. After the close it is a private company whose only job is post-acute software. Lujan’s first weeks were customer visits on both the skilled-nursing side and the home-health and hospice side. Providers still get the same charts, billing tools and Best in KLAS-awarded product; they now get an owner that says it will spend on that product instead of on sleep-device roadmaps.

Frazier and ResMed expected transition-services contracts to keep systems, processes and tools running while the cutover finishes, and to cover most stranded costs in year one. ResMed said it will work down whatever cost is left. For a nursing home or hospice agency, the practical test is whether charting, claims and payroll stay up while the parent logo on the invoice changes.

The competitive set does not reset with the close. MatrixCare still sits across skilled nursing, senior living, home health and hospice. The reason Frazier spent years on this sector is that those records are the operating system of the building. The reason ResMed sold is that this operating system never became a growth engine next to AirSense-class devices. Both can be true at the same price.

Frequently Asked Questions

Where Is MatrixCare Based, and Who Leads It Now?

MatrixCare is headquartered in Bloomington, Minnesota. Jonathan Lujan became chief executive on the September 1 close; he had been a Frazier executive in residence and earlier led Sight Growth Partners, after operating roles at DaVita’s Lifeline Vascular Care and Surgical Information Systems. Ryan Lucero is the Frazier general partner on the deal, with Clarissa Berman as a principal on the account.

What Did ResMed Keep After Selling MatrixCare?

Brightree remains ResMed’s U.S. software for home medical equipment providers, the same channel that distributes the company’s sleep and breathing devices. MEDIFOX DAN remains the German residential-care software business. Healthcare First, Citus, and the home health and hospice products that had been sold under the MatrixCare brand went with the sale.

How Does an Accelerated Share Repurchase Work in This Deal?

ResMed paid Citibank $450 million on September 3, 2026, and received an opening block of stock equal to 80% of that amount divided by the September 2 closing price. The final share count is set later from the average daily volume-weighted price over the contract, minus a discount. Final settlement is scheduled for December 2026, though Citibank can finish earlier. At the end, Citibank may deliver more shares, or ResMed may owe shares or cash, depending on how the stock traded.

How Large Was MatrixCare When ResMed Bought It?

When the $750 million purchase closed in November 2018, deal-time figures put MatrixCare at about $122 million of net revenue and about $30 million of EBITDA, with more than 15,000 providers already on the platform. The 2026 sale used about $220 million of revenue and about $55 million of non-GAAP operating profit, so the customer base description stayed in the same 15,000-provider range even as sales grew.

Did the Sale Change ResMed’s Software Growth Target?

Yes, on purpose. ResMed said Residential Care Software should accelerate to high-single-digit year-over-year revenue growth in fiscal 2027 once MatrixCare is removed, and that operating leverage should improve with it. That guidance sits in the July 7 current report and was meant to be filled in on the August 6, 2026, earnings call alongside the full-year outlook.

Final settlement on the Citibank repurchase is still due in December 2026. Until then, Frazier owns the records platform, ResMed owns fewer shares, and the 2018 software price has a printed exit.

Disclaimer: This article is news reporting and analysis of a completed corporate sale and related capital-return plans, and it is for information only. It is not investment advice, a recommendation to buy or sell ResMed stock, MatrixCare-related securities, or any other security, and it is not a solicitation to participate in a share repurchase. Readers should consult a qualified financial adviser or licensed broker about their own holdings and tax position before acting on deal prices, multiples, or buyback details. Figures, close dates, and program terms reflect company filings and statements available for the events described and may change with later adjustments, settlements, or new disclosures.