Respiri expands with US acquisition

Respiri (ASX:RSH) has announced the acquisition of Orb Health Inc., a US-based connected care organization. The deal, valued at US$9 million, will be executed through the issuance of shares. Orb Health will also invest US$0.7 million in Respiri. This strategic acquisition is set to enhance Respiri's position in the US healthcare market.

Acquisition summary and future outlook

Respiri's acquisition of Orb Health is a strategic move aimed at accelerating growth in the US healthcare market. The acquisition, initially valued at US$9 million, involves issuing fully paid ordinary shares and includes an additional payment contingent on financial targets. Orb Health will also invest US$0.7 million in Respiri. This move is expected to create synergies and improve profitability by early 2025. The acquisition will consolidate operations, potentially ceasing Respiri's software engineering in Australia and centralizing management in the US. With Orb Health's established network and expected revenue growth, Respiri aims to leverage cross-selling opportunities and expand connected care services. Shareholder approval is anticipated, with a meeting expected in late December 2024.

Executive commentary on strategic acquisition

This acquisition marks a significant step for Respiri as we expand our footprint in the US healthcare sector. The integration of Orb Health's capabilities with our existing offerings will allow us to provide comprehensive connected care solutions. We anticipate this will lead to substantial synergies and open up new growth opportunities in this vital market.