Respiri (ASX:RSH) announced a binding agreement to acquire the operations 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 US$9 million, is a pivotal move for Respiri as it expands its footprint in the US healthcare market. Orb Health plans to invest an additional US$700,000 in the combined entity to support transition and working capital.

The acquisition is expected to generate substantial synergies, including approximately A$3.5 million in annual cost savings through operational streamlining, technology integration and structural consolidation. Cross-selling opportunities between the two companies are expected to generate over A$2 million in additional revenue in the first year of operation. Respiri expects its U.S. operations to be profitable by early 2025.

The combined organization will manage approximately 5,500 enrolled patients and plans for further growth.

Respiri is an Australian digital health company developing innovative solutions for respiratory care. The company’s flagship product, wheezo, is a Class II FDA-approved device that uses advanced acoustic technology to monitor wheezing in asthma and other chronic respiratory diseases. Respiri’s integrated platform provides healthcare professionals with remote patient monitoring and actionable insights to help improve patient outcomes.

said Marjan Mikel, CEO of Respiri. “Orb’s business and team provide us with an excellent opportunity to further enhance our capabilities. This transaction positions us for future growth as we pursue our goal of becoming the preeminent leader in the U.S. connected care market. It will be a model.”

The acquisition is expected to close by January 2025, subject to shareholder approval and other regulatory conditions.