Sleep health device manufacturer ResMed is selling its MatrixCare software business to US-based private equity firm Frazier Healthcare Partners for 34 per cent less than what it paid eight years ago.

Under the deal revealed on Wednesday, ResMed will pocket $US490 million ($A707m) in cash, down from the $US750m ($A1.08 billion) it forked out in 2018.

The transaction is expected to close during the September quarter, subject to regulatory approvals.

ResMed intends to use the proceeds to return capital to shareholders, including through an accelerated share repurchase program, and for general corporate purposes.

“This move reflects ResMed’s 2030 strategy by focusing on high-growth, scalable opportunities in sleep health, breathing health and connected home-based healthcare,” the company said.

“The divestiture also strengthens ResMed’s ability to reallocate capital and resources toward innovation, operational scale and long-term value creation across its connected, home-based care ecosystem.”

ResMed says MatrixCare solutions are used in nursing, senior living and long-term care, life planning communities and home health and hospice care.

ResMed was founded in Sydney and is now based in San Diego, with listings on both the Australian and New York stock exchanges.