Resmed RMD has entered into a definitive agreement to sell its MatrixCare business to private equity firm Frazier Healthcare Partners. The divestiture aligns with the company's long-term strategy to sharpen its focus on higher-growth opportunities across sleep health, breathing health and connected home-based care. The transaction is expected to close in the first quarter of fiscal 2027, subject to regulatory approvals and customary closing conditions.
From an investor's perspective, the divestiture underscores Resmed's disciplined capital allocation strategy and reinforces its commitment to businesses with stronger long-term growth potential and higher scalability. By streamlining its portfolio and reallocating resources toward innovation in its core connected care ecosystem, the company is positioning itself to strengthen its competitive edge and drive sustainable value creation, while enabling MatrixCare to pursue growth under an owner dedicated to the long-term care software market.
Likely Trend of RMD Stock Following the News
Shares of RMD have traded flat since the announcement on July 7. In the year-to-date period, shares of the company have lost 13.5% compared with the industry’s 21.8% decline. The S&P 500 increased 9.5% in the same time frame.
The divestiture is likely to strengthen Resmed's long-term growth profile by enabling the company to concentrate investments on its core sleep and breathing care franchises, where it enjoys strong market leadership and significant innovation opportunities. The transaction should also enhance capital allocation flexibility, allowing Resmed to accelerate product development, expand its AI-powered digital health offerings and scale its connected home-care ecosystem.
By exiting a non-core software business, the company can simplify operations, improve strategic focus and better position itself to capitalize on the growing global demand for home-based healthcare and sleep therapy solutions.
RMD currently has a market capitalization of $29.86 billion.
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More on the News
The transaction covers the entire MatrixCare business, including Healthcare First, Citus and its home health and hospice software solutions, which together serve more than 15,000 providers across skilled nursing, senior living, life plan communities, home health and hospice settings. However, the deal does not include Resmed's other healthcare software businesses, Brightree in the United States and MEDIFOX DAN in Germany, both of which remain integral to the company's connected care strategy.
Management stated that MatrixCare will continue operating as part of Resmed until the transaction closes, with no disruption to customer service or support. Resmed also noted that it will provide additional details regarding the transaction's financial impact in its fiscal fourth-quarter 2026 regulatory filings and has furnished a Form 8-K with the SEC outlining the agreement.
For Frazier Healthcare Partners, the acquisition represents a strategic investment in the growing post-acute care technology market. The private equity firm, which focuses exclusively on healthcare investments, plans to invest aggressively in product innovation to strengthen MatrixCare's capabilities and support evolving customer needs across long-term and post-acute care settings.
Resmed believes the new ownership structure will allow MatrixCare to pursue its long-term growth ambitions with a dedicated strategic focus, while enabling it to devote greater attention and resources to advancing AI-powered digital health solutions, cloud-connected medical devices and other technologies aimed at improving sleep, breathing and home-based healthcare outcomes.
Favorable Industry Prospect for RMD
Going by the data provided by Grand View Research, the global home healthcare market size was valued at $485.3 billion in 2025 and is projected to grow from $504.8 billion in 2026 to $1015.8 billion by 2033, at a CAGR of 10.5% from 2026 to 2033.
The market is driven by rising demand for cost-effective alternatives to curb rising healthcare costs and the growing penetration of the virtual and remote care industry.
A Recent Development by RMD
Recently, Resmed completed the acquisition of Noctrix Health to broaden its clinical sleep health portfolio with the addition of Nidra Tonic Motor Activation Therapy, an FDA De Novo-classified, non-invasive treatment for moderate-to-severe Restless Legs Syndrome RLS. The deal expands Resmed's presence into one of the most prevalent sleep disorders, complementing its core sleep therapy business while enhancing its ability to offer innovative, drug-free treatment options. The acquisition is also expected to accelerate patient access to the therapy by leveraging Resmed's global commercial and distribution capabilities.
RMD’s Zacks Rank & Key Picks
Currently, RMD carries a Zacks Rank #3 (Hold).
Some better-ranked stocks from the broader medical space are Veracyte VCYT, West Pharmaceutical WST and Pacific Biosciences of California PACB.
Veracyte, currently sporting a Zacks Rank #1 (Strong Buy), has an estimated earnings growth rate of 5.1% for 2026. VCYT’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 45.9%. You can see the complete list of today’s Zacks #1 Rank stocks here.
Veracyte’s shares have gained 33.3% against the industry’s 14.2% decline in the year-to-date period.
West Pharmaceutical, currently carrying a Zacks Rank #2 (Buy), has an estimated long-term earnings growth rate of 13.9%. WST’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 19.4%.
West Pharmaceutical’s shares have gained 28.5% against the industry’s 1.2% decline in the year-to-date period.
Pacific Biosciences of California, currently carrying a Zacks Rank #2, has an estimated earnings growth rate of 22.6% for 2026. PACB’s earnings beat estimates in each of the trailing four quarters, the average surprise being 29.8%.
Pacific Biosciences’ shares have lost 19.8% compared with the industry’s 14.2% decline in the year-to-date period.
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ResMed Inc. (RMD): Free Stock Analysis Report
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This article originally published on Zacks Investment Research (zacks.com).