Privately held Brightree, based in Atlanta, makes cloud-based software for use in hospice, convalescence and other home health care. ResMed said Brightree’s software is frequently used when there is a high prevalence of sleep-disordered breathing.
“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,” said Mick Farrell, CEO of ResMed.
“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.
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 operating earnings of about $43 million in 2015.
The announcement was made after markets closed in New York, but ResMed’s stock was down 1.5 percent to $58.33 in after-hours trading.
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.