ResMed buys Germany sleep tech Mementor

San Diego-based medical device company ResMed (NYSE: RMD) bought Mementor, a German digital health startup aimed at treating insomnia.

Why it matters: Already a powerful presence across Europe, ResMed through this latest acquisition further expands its German presence.

Deal details: Mementor will operate as a separate business unit under ResMed, to be led by Mementor co-founder and CEO Noah Lorenz and Katherina Jekerle, ResMed Germany’s senior marketing director.

• Financial terms were not disclosed.

How it works: Mementor offers a digital tool for sleep called Somnio that applies cognitive behavioral therapy (CBT) to chronic sleep issues.

• As a permanently approved digital health app in Germany, Somnio can be prescribed and is thus eligible for reimbursement, according to ResMed.

Context: ResMed is the leading manufacturer of CPAP and BiPAP machines and has made dozens of acquisitions in the digital SaaS space, such as:

• The $225 million purchase of digital inhaler startup Propeller Health in 2018.
• The $750 million purchase of post-acute electronic health record company MatrixCare, also in 2018.

Yes, and: The company's digital sleep therapy portfolio already includes:

• AirView, a cloud-based system that helps manage patients with sleep-disordered breathing and respiratory insufficiency.
• myAir, an online support program and app that tracks nightly sleep data in hand with interactive coaching.
• ResMed Data Exchange, an umbrella of APIs, developer tools and technical resources to integrate ResMed Air Solutions into third-party applications.

• ResMed ReSupply, which manages a resupply program for sleep apnea therapy equipment.

Flashback: ResMed in June forked out $1 billion for MediFox Dan, inheriting Germany's dominant leader in out-of-hospital SaaS ecosystems.

• With that deal, ResMed also gained entry into new care settings including those for young people, people with disabilities and outpatients.

Between the lines: SaaS ResMed president Bobby Ghoshal told Sarah at the time that German payers are increasingly willing to invest in the digitization of care.

The take-home: Already a burgeoning care provider in Europe and the U.S., ResMed's latest acquisition deepens its global presence and sets up ResMed to continue being a serious player in digital health and medical tech.