US-based ResMed has signed a definitive agreement to buy digital therapeutics developer Propeller Health for a total consideration of $225m.

Propeller Health is focused on offering health solutions for patients suffering from chronic obstructive pulmonary disease (COPD) and asthma.

The firm’s portfolio consists of a digital platform with sensors that stick to consumers’ inhalers and pair with a mobile application. These sensors automatically track medication use and offer personalised feedback.

Propeller said that its solutions led to a 58% improvement in medication adherence, a 48% rise in symptom-free days, and a 53% decrease in emergency room visits.

The Propeller digital therapeutics for stage II and III COPD are expected to complement ResMed’s Cloud-connected ventilators range designed for stage III and IV COPD.

ResMed expects the acquisition to help strengthen its footprint in digital health for COPD.

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“We can positively impact the lives of even more of the 380 million people worldwide who are living with this debilitating chronic disease.”

ResMed CEO Mick Farrell said: “By working with Propeller’s existing partners to offer digital solutions for respiratory care pharmaceuticals and building on our proven ability to support digital solutions at scale, we can positively impact the lives of even more of the 380 million people worldwide who are living with this debilitating chronic disease.”

Meanwhile, Propeller anticipates that the deal will aid in ensuring broader use of its solutions.

Propeller Health co-founder and CEO David Van Sickle said: “ResMed shares our belief that connected health solutions create vastly better experiences and outcomes for people with chronic respiratory disease.

“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.”

The acquisition is expected to close by the third quarter of ResMed’s fiscal year 2019,  subject to customary closing conditions and approvals.

After completion of the transaction, Propeller will operate as a standalone entity within ResMed’s Respiratory Care portfolio.

Last month, ResMed also signed an agreement to acquire long-term post-acute care software provider MatrixCare for $750m.