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.
Image source: Getty Images
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.
