Respiri (ASX:RSH) has announced a binding agreement to acquire the business and assets of Orb Health Inc, a Texas-based provider of remote patient monitoring (RPM) and chronic care management (CCM) services. The acquisition, valued at US$9m, is a pivotal move for Respiri as it expands its footprint in the US healthcare market. Orb Health is expected to invest an additional US$0.7m into the combined entity, supporting the transition and working capital.
This acquisition is projected to drive substantial synergies, including annual cost savings of approximately A$3.5m through operational streamlining, technology integration, and structural consolidation. Cross-selling opportunities between the two entities are anticipated to generate over A$2m in additional revenue during the first year of operations. Respiri expects its US operations to achieve profitability by early 2025.
The combined entity will manage approximately 5,500 enrolled patients, with plans for further growth.
Respiri is an Australian digital health company that develops innovative solutions for respiratory care. Its flagship product, wheezo, is a Class II FDA-approved device that uses advanced acoustic technology to monitor wheezing in asthma and other chronic respiratory conditions. Respiri’s integrated platform provides remote patient monitoring and actionable insights for healthcare professionals, supporting improved patient outcomes.
Marjan Mikel, CEO of Respiri, noted: “The Orb business and team provide an outstanding opportunity to drive our capabilities further. This transaction is a model for future growth as we pursue our goal of becoming the preeminent leader in the US connected care market.”
Completion of the acquisition is expected by January 2025, pending shareholder approval and other regulatory conditions.