Breathe (ASX:RSH) 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 $9 million, represents a key move for Respiri as it expands its presence in the US healthcare market. Orb Health is expected to invest an additional $0.7 million in the combined entity, supporting transition and working capital.
This acquisition is expected to drive substantial synergies, including annual cost savings of approximately A$3.5 million through operational rationalization, technology integration and structural consolidation. Cross-selling opportunities between the two entities are expected to generate over A$2 million in additional revenue during the first year of operation. Respiri expects its U.S. operations to reach 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 developing innovative respiratory care solutions. Its flagship product, wheezo, is an FDA-cleared Class II 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 providers, supporting improved patient outcomes.
Marjan Mikel, CEO of Respiri, noted: “Orb’s business and team provide an exceptional opportunity to further develop our capabilities. This transaction represents a blueprint for future growth as we pursue our goal of becoming the preeminent leader in the U.S. connected care market.”
The acquisition is expected to be completed by January 2025, pending shareholder approval and other regulatory conditions.