ResMed (NYSE:RMD) (ASX:RMD), a provider of cloud-connected medical devices and out-of-hospital software-as-a-service (SaaS) business solutions, said on Monday that it has entered into a definitive agreement to acquire Propeller Health for a purchase price of USD225m.

Following the acquisition, Propeller Health will operate as a standalone business, maintaining its COPD and asthma product solutions, as well as its partnerships with pharmaceutical and healthcare organisations. There will be no immediate changes to management, locations or business processes.

Based in Madison, Wisconsin, Propeller Health is a digital therapeutics company providing connected health solutions for people living with chronic obstructive pulmonary disease (COPD) and asthma.

Propeller Health's ability to support people in stage II and III severity levels of their COPD are complementary to ResMed's own suite of cloud-connected ventilators for those with stage III and IV COPD, including Astral, Stellar and AirCurve 10 ST-A with iVAPS – plus ResMed's new portable oxygen concentrator Mobi.

The companies expect to finalise the deal before the end of the third quarter of ResMed's fiscal year 2019, subject to customary closing conditions, including regulatory approvals.