The “unlimited demand” for ResMed’s sleep apnea machines has given the San Diego, CA-based company the capital to become involved in some heavy-duty M&A. ResMed said it had signed a definitive agreement to acquire Medifox Dan for about $1 billion.

The deal is set to close by Dec. 31, 2022 and will be funded through ResMed’s current credit facilities.

Hildesheim, Germany-based Medifox Dan is a specialist in out-of-hospital software solutions for providers in major settings across the care continuum, from Hg, a leading software and services investor.

“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 U.S. market and strengthen our position as the global leader in healthcare software solutions for lower-cost and lower-acuity care,” said Mick Farrell, ResMed CEO. “We are excited to welcome the Medifox Dan team to our global ResMed family.”

The deal helps expand ResMed’s presence in Germany. Medifox Dan’s customer base is also complementary to the customers of ResMed’s U.S.-based SaaS business.

Medifox Dan has more than 600 employees. ResMed plans for MEDIFOX DAN to operate under its current brand its ResMed SaaS business – as Brightree and MatrixCare do today.

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,” said MEDIFOX DAN Co-Managing Directors Dr. Thorsten Schliebe and Christian Städtler.

A Catalyst for the Deal?

What happened to give ResMed a boost in capital. The answer is the massive ongoing recall of Philips’ sleep apnea technology.  About a year ago, MD+DI reported Philips was recalling between three million and four million ventilators and sleep apnea devices because the foam used to dampen the machines' sound can degrade due to high heat and humidity and/or ozone-based cleaning, and emit small particles that irritate airways. Gases released by the degrading foam may also be toxic or carry cancer risks.

The recall left a vacuum that ResMed easily filled.