Propeller Health fetches $225 million price tag

Calif.-based ResMed buys Madison-area firm

Propeller Health, one of the emerging health care companies in the Madison area, has agreed to be bought by ResMed Inc. for $225 million.

Propeller Health makes mobile digital devices that track medication use for people with asthma and chronic obstructive pulmonary disease, or COPD.

The company, which doesn’t publicly disclose its revenue, was founded in 2010 and employs about 90 people in Madison and San Francisco.

ResMed, based in San Diego, makes and develops medical devices and software to treat and manage sleep apnea, COPD and other respiratory conditions.

ResMed, which employs about 6,000 people, had net income of $315.6 million and revenue of $2.3 billion in its fiscal year ended June 30.

“Acquiring Propeller is a significant step for ResMed toward becoming the global leader in digital health for COPD,” Mick Farrell, chief executive of ResMed, said in a statement.

ResMed’s products and services are sold in 120 countries, and more than 6 million devices are connected through its remote patient-monitoring software, according to the company.

The acquisition is expected to close by March 30.

Propeller will continue to operate as a standalone business in Madison, and David Van Sickle, co-founder and chief executive of Propeller, will remain in his current role after the acquisition, according to the news release on the acquisition. “ResMed shares our belief that connected health solutions create vastly better experiences and outcomes for people with chronic respiratory disease,” Van Sickle said in a statement. “Joining forces enables us to accelerate the adoption of Propeller’s solutions at a global scale, and serve as a powerful platform for a broad set of pharmaceutical and health care partners.”

Propeller has developed small sensors that easily attach to inhalers and pair with a mobile app to track medication use and provide other feedback to physicians. Its digital platform has been shown to improve medication adherence by 58 percent, increase symptomfree days by 48 percent and reduce visits to hospital emergency departments by 53 percent, according to Propeller.

The platform is used by patients, physicians and healthcare organizations in the U.S., Europe and Asia.

The company has raised $69.5 million since its founding, and its investors include McKesson Ventures, Aptar Pharma, Safeguard Scientifics, Social Capital, Hikma Ventures, 3M Ventures and SR One.