Medical device maker ResMed to acquire Germany's MEDIFOX DAN in $1 bln deal

New Delhi: Medical equipment maker ResMed Inc said on Tuesday it will buy German healthcare software provider MEDIFOX DAN GmbH in a $1 billion deal to expand in software-as-a-service (SaaS) outside the United States.

MEDIFOX, owned by private-equity firm Hg, is a provider of software to more than 6,000 ambulatory care services, care homes and therapists in Germany, according to the latter's website.

ResMed will fund the deal, which is expected to close by the end of its second quarter in fiscal year 2023, with its existing credit facilities.

"We're seeing greater adoption of digital solutions across Germany as its population continues to age and severe staffing shortages continue to challenge German care providers. MEDIFOX DAN and ResMed are well-positioned to help providers across major out-of-hospital care settings meet rising demands and ultimately help improve patient outcomes," ResMed's SaaS President Bobby Ghoshal said.

The San Diego, California-based company said the deal will add to its non-GAAP diluted earnings per share after close.

Hg, the manager of HgCapital Trust Plc (HGT), said the deal has an enterprise value of $1 billion and sees HGT's investment in MEDIFOX valued at nearly 47.3 million pounds ($57.63 million).

($1 = 0.8211 pounds)