SAN DIEGO, Calif., Feb. 22, 2016 /PRNewswire/ -- ResMed (NYSE:RMD),
the world's leading tech-driven medical device company and
innovator in sleep-disordered breathing and respiratory care, today
announced a definitive agreement to acquire privately held
Brightree®, a leader in business management and clinical
software applications for the post-acute care industry. This
acquisition adds to ResMed's global leadership in connected
healthcare solutions.
Brightree's cloud-based software helps customers improve
clinical and business performance in the post-acute care industries
of home/durable medical equipment (HME/DME), home health, and
hospice – all areas with high prevalence of sleep-disordered
breathing, chronic obstructive pulmonary disease (COPD),
neuromuscular disease, and other chronic diseases.
"This acquisition furthers ResMed's position as the leading
tech-driven medical device company and gives our customers new
tools to help them increase operational efficiency and improve
cash-flow while delivering best-in-class patient care," said
Mick Farrell, CEO of ResMed. "ResMed
is already the recognized global leader in remote patient
monitoring and connected healthcare solutions. This acquisition
will enable us to add to our portfolio of digital solutions to
drive operational excellence and improve outcomes for patients,
providers and payers."
"The Brightree team is very excited to join forces with ResMed
to help post-acute care providers navigate the inherent
complexities of the healthcare system and ensure that patients get
the care they need," said Dave
Cormack, president and CEO of Brightree. Brightree is
majority-owned by Battery Ventures, a global investment firm.
Under the terms of the agreement, ResMed will acquire Brightree
for $800 million in cash, which
ResMed will fund primarily with debt. Brightree had net sales of
approximately $113 million and EBITDA
of about $43 million in calendar year
2015.
The transaction is expected to be immediately accretive to gross
margins and non-GAAP diluted earnings per share after close and
beyond. The transaction includes an estimated $300 million from an anticipated future tax
benefit, which is expected to positively impact ResMed cash flows
over 15 years. Including the present value of these expected tax
benefits, the purchase price of $800
million represents a valuation multiple of 13.5 times 2015
EBITDA.
On completion of the transaction, Brightree will continue to
operate as a separate entity under the Brightree brand name. The
company will be managed independently, with its headquarters
remaining in Atlanta. ResMed
expects Brightree employees, including Brightree President and CEO
Dave Cormack, to continue in their
current roles.
Connected healthcare
Building healthcare informatics offerings is central to ResMed's
growth strategy and its goal of helping customers improve patient
quality of life, slow the progression of chronic disease and lower
overall healthcare system costs.
Brightree is the leading business management and clinical
software application used by ResMed customers. Its suite of
products and solutions complements ResMed's Air Solutions platform
and enhances ResMed's delivery of future products and solutions to
customers and other market segments. ResMed's potential growth
opportunities as a result of the acquisition include expanding into
the home health and hospice segments.
The transaction is expected to close by the end of the fourth
quarter of fiscal year 2016, subject to customary closing
conditions and regulatory approvals.
Advisors
DLA Piper is serving as ResMed's legal counsel. William Blair & Company is serving as
exclusive financial advisor to Brightree, and Cooley LLP is serving
as its legal counsel.
Investor webcast
ResMed will discuss the transaction on a live webcast at
5:00 p.m. Eastern time on
February 22, 2016. The live webcast
can be accessed on ResMed's Investor Relations website at
investors.resmed.com. The online archive of the broadcast will be
available on ResMed's website approximately two hours after the
webcast. In addition, a telephone replay of the webcast will be
available approximately two hours after the call by dialing
855.859.2056 (U.S.) and +1 404.537.3406 (international) and
entering a passcode of 51915219. The telephone replay will be
available until March 7, 2016.
About Brightree
Brightree is the leading provider of cloud-based software to
improve clinical and business performance in the post-acute care
industry. The company serves more than 2,500 organizations in the
HME, home health, hospice, orthotic and prosthetic, HME pharmacy,
home infusion and rehabilitation home care segments. Brightree's
solutions follow the natural workflow of providers to automate and
improve how they manage their businesses, serve patients and
protect reimbursements. The company is ranked one of the top 100
healthcare IT companies in the U.S. on the prestigious Healthcare
Informatics 100 (HCI 100) list. For more information, visit
www.brightree.com or call 1.888.598.7797
About ResMed
The global team at ResMed (NYSE:RMD) is united in the commitment
to change millions of lives with every breath. With more than 4,000
employees and a presence in more than 100 countries, the company
has pioneered innovative devices for the diagnosis, treatment and
management of sleep-disordered breathing, COPD and other chronic
conditions for more than 25 years. ResMed's world-leading products
and connected healthcare solutions improve the quality of life for
millions of patients worldwide, reduce the impact of chronic
disease, and save healthcare costs. For more information about
ResMed and its businesses, visit www.ResMed.com or follow
@resmed on Twitter and Facebook.
Forward-looking statements
Statements contained in this news release that are not
historical facts are "forward-looking" statements as contemplated
by the Private Securities Litigation Reform Act of 1995. These
forward-looking statements – including statements regarding
ResMed's projections of future revenue or earnings, expenses, new
product development, new product launches and new markets for its
products and the integration of acquisitions – are subject to risks
and uncertainties that could cause actual results to materially
differ from those projected or implied in the forward-looking
statements. Additional risks and uncertainties are discussed in
ResMed's periodic reports on file with the U.S. Securities &
Exchange Commission. ResMed does not undertake to update its
forward-looking statements.
ResMed
Contacts:
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For News
Media
|
For
Investors
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Alison
Graves
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Agnes Lee
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Global Corporate
Communications
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Senior Director,
Investor Relations
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+1.858.836.6731
|
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+1.858.836.5971
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news@resmed.com
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investorrelations@resmed.com
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SOURCE ResMed Inc.