Madison health-tech startup Propeller Health is being acquired for $225 million.
The startup, which makes “smart inhalers” that use sensors to help patients better manage respiratory conditions, is being scooped up by ResMed, a publicly traded healthcare technology company based in San Diego.
Propeller will operate as a standalone business under ResMed, and it will maintain its Madison headquarters. The company added that there will be no immediate changes to management or business processes, according to a news release.
“ResMed shares our belief that connected health solutions create vastly better experiences and outcomes for people with chronic respiratory disease,” David Van Sickle, co-founder and CEO of Propeller, 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 healthcare partners.”
Propeller launched in 2010 and has become one of Wisconsin’s most high-profile startups, raising around $70 million in venture funding. It raised a $20 million round in May from investors including 3M Ventures, Safeguard Scientifics and Social Capital.
The startup's digital platform connects a patient’s inhaler to their smartphone via a sensor, and then uses medication use and location data to deliver insights on their disease.
Propeller has around 100 employees, most of which are based in Madison. It also has an office in San Francisco.
ResMed is a maker of cloud-connected medical devices and software to help treat things like sleep apnea, chronic obstructive pulmonary disease and other respiratory conditions.
The news follows another nine-figure Wisconsin tech acquisition in 2018. Brookfield-based OnCourse Learning was acquired by Germany's Bertelsmann for a reported $500 million in September.
