Ann: ResMed to Acquire Brightree, page-23

"The only rationale I can see for ResMed's buying the firm outright is to deny current and potential competitors from employing its technologies"


@Hideandreason,

If that was the case, what mission-critical technology(ies) do you think RMD currently procures from Brightree that are so uniquely valuable in a competitive positioning sense, that it warranted RMD cutting a US$800m cheque - equivalent to a whopping 18.8x EV/EBITDA multiple - to Brightree's owners?

Because nowhere in the announcement made by Resmed, nor on the webcast, that related to this acquisition, did this aspect that you have raised get any mention whatsoever.


"Perhaps management sees the medium of service delivery as a key point of differentiation in future."

I'm sure they do, and I'm sure they would be right in thinking that way.

But then go ahead and do what you have always done so successfully. Create value for your shareholders by building that service delivery capability yourself.

Don't go and pay someone for it.
Where's the value creation in that?!

I am yet to understand how paying almost 20 times for the EBITDA of some different company is in your and my interests shareholders.

Lookong at it another way, this is the question that I believe all shareholders should be asking themselves in these sorts of situation is:

If this was your private company, and while you were away on holidays and out of reach, the person you left in charge of your company undertook this transaction in your absence, how would you feel about it on your return?

I know what my response would have been!