Battery Ventures-Backed Software Company Brightree LLC to Be Acquired for $800 Million

Tools

Brightree, a Home-Healthcare SaaS Innovator, Agrees to Be Purchased by Medical-Device Company ResMed to Promote Connected Healthcare

BOSTON, MA--(Marketwired - Feb 23, 2016) - Brightree LLC*, a leading provider of cloud-based software and services to the post-acute healthcare industry, has signed a definitive agreement to be acquired by ResMed (NYSERMD) a tech-driven, medical-device company and pioneer in sleep-disordered breathing and respiratory care. Battery, a global investment firm, invested in Brightree in 2008 and became the company's majority owner.

"Software-as-a-service (SaaS) companies with strong, industry-specific products and top-notch management teams are consistently sought after by strategic acquirers -- as evidenced by this deal," said Neeraj Agrawal, a Battery general partner and Brightree board member. "Battery is proud to have backed Brightree and we continue to be a big believer in cloud-based applications."

Brightree, based in Atlanta, Ga., provides innovative business-management and clinical-software applications to markets including home medical equipment, home health and hospice.

Brightree's customers serve patients with high rates of sleep-disordered breathing, chronic obstructive pulmonary disease and neuromuscular disease -- all areas of focus for ResMed. ResMed, which will pay $800 million in cash for Brightree, expects the transaction to be immediately accretive to gross margins and non-GAAP diluted earnings per share after the deal's closing.

Chelsea Stoner, another Battery general partner and Brightree board member, said the deal also illustrates the increasing importance of software to many industries, from healthcare to industrial applications. "Every company is becoming a software company today," said Stoner, who has been involved in other Battery healthcare-IT investments such as WebPT, Practice Fusion and Data Innovations.*

Last year, Brightree had annual revenue of $113 million and EBITDA of roughly $43 million. The company carries minimal debt.

"The Battery team has been a valued Brightree partner, helping us recruit key executives, plan long-term strategy and drive key acquisitions," said Dave Cormack, Brightree's CEO. Added Rick Chitty, Brightree's board chairman: "Working with Battery has been a pleasure from both a business and personal perspective. Together we grew the company organically and through multiple, tuck-in acquisitions, boosting revenue from $8 million to well over $100 million, in addition to building a strong brand."

*For a full list of all Battery investments and exits, please click here.

About Battery Ventures

Battery strives to invest in cutting-edge, category-defining businesses in markets including software and services, Web infrastructure, consumer Internet, mobile and industrial technologies. Founded in 1983, the firm backs companies at stages ranging from seed to private equity and invests globally from offices in Boston, the San Francisco Bay Area and Israel. Follow the firm on Twitter @BatteryVentures, visit our website at www.battery.com and find a full list of Battery's portfolio companies here.

About Brightree

Brightree is a leading provider of cloud-based software to improve clinical and business performance in the post-acute care industry. The company serves more than 2,500 organizations in the home medical equipment (HME), home health, hospice, orthotic and prosthetic (O&P), HME pharmacy, home infusion and rehab home care segments. Brightree's solutions follow the natural workflow of providers to automate and improve how they manage their businesses, serve patients, and protect reimbursements. The company is ranked as one of the top 100 healthcare IT companies in the U.S. on the prestigious Healthcare Informatics 100 (HCI 100) list. For further information, visit http://www.brightree.com or call 1.888.598-7797.