RMD: ResMed Takes 35% Hit on MatrixCare Sale

ResMed (ASX: RMD) is selling its MatrixCare business to a U.S. private equity firm for 35% less than it paid in 2018. The deal ends ResMed's six-year foray into post-acute care software.

The company did not disclose the buyer or the exact sale price. ResMed originally acquired MatrixCare in 2018 to expand beyond sleep apnea into software for nursing homes and home health agencies. The 35% discount on exit means the business did not generate the returns ResMed expected.

ResMed shareholders will see the impact in the next quarterly report. The company will likely record an impairment charge on the sale. A clean exit without further liabilities would remove a distraction. ResMed can refocus on its core sleep and respiratory care markets, where it holds a dominant position.

If the buyer walks away or regulatory approvals stall, ResMed faces the prospect of holding a business it no longer wants. The 35% loss raises questions about management's capital allocation decisions.

The broader market context adds pressure. ASX 200 futures were down about 0.4% on Wednesday, weighed by Wall Street's semiconductor selloff and renewed Middle East tensions after U.S. strikes on southern Iran. Oil rose 5.8% on the news. The transaction is expected to close in the current quarter.