On June 1, 2026, we completed our acquisition of 100% of the shares in Noctrix Health, LLC, or Noctrix, a medical device company developing clinically validated wearable therapeutics, for $335 million. Prior to this transaction, we held a 3% equity interest in Noctrix which was accounted for as an equity investment. On the acquisition date, we remeasured our previously held equity interest at a fair value of $7 million, which resulted in a gain of $4 million during the year ended June 30, 2026. The gain was recorded in other income, expense (net) on the consolidated statements of income.

The acquisition has been accounted for as a business combination using purchase accounting and included in our consolidated financial statements from June 1, 2026. The total purchase price was allocated to Noctrix's tangible and identifiable intangible assets and liabilities based upon estimated fair values as of the June 1, 2026 closing date. The assessment of fair value is preliminary and is based on information that was available at the time our consolidated financial statements were prepared. Measurement period adjustments may arise upon the availability of further information regarding events or circumstances that existed at the acquisition date and will be recorded in the period in which they are determined, as if they had been completed at the acquisition date. The finalization of our purchase accounting assessment could result in changes in the valuation of assets acquired and liabilities assumed, though we do not expect these changes will materially modify the preliminary purchase price. The final determination of the fair value of certain assets and liabilities will be completed within the measurement period as required by ASC Topic 805.


	Preliminary		Intangible assets - useful life
Cash	$	2,595
Accounts receivable	15,568
Property, plant and equipment	127
Inventory	1,184
Other assets	2,148
Accounts payable and accrued expenses	(5,097)
Identifiable intangible assets:
Developed technology	106,800		15 years
Customer relationships	6,300		5 years
Trade names	4,900		7 years
Deferred tax liabilities	(1,282)
Goodwill	202,024
Purchase price	$	335,267

We incurred acquisition related costs associated with the Noctrix acquisition of $3 million during the year ended June 30, 2026. Acquisition related costs are expensed as incurred and recorded within selling, general, and administrative expenses on our consolidated statements of income. We did not incur acquisition related costs associated with the transaction during the years ended June 30, 2025, or 2024.

On June 30, 2026, we entered into a definitive agreement to sell our MatrixCare business for $490 million in an all-cash transaction, subject to certain closing adjustments. The transaction includes MatrixCare and related software offerings historically sold under the MatrixCare brand, including Healthcare First, Citus Health, and home health and hospice solutions, collectively defined as the "MatrixCare business”, within our Residential Care Software Segment. The transaction is expected to close in the first quarter of fiscal year 2027.

As of June 30, 2026, we determined that the MatrixCare business meets the criteria for classification as held for sale. The accompanying Consolidated Balance Sheet reflects the MatrixCare business assets and liabilities held for sale as of June 30, 2026. The sale of the MatrixCare business does not represent a strategic shift that has a major effect on our operations or financial results and is therefore not presented as a discontinued operation.

We allocated approximately $327 million of the total Residential Care Software segment goodwill to the MatrixCare business, for a total carrying value of $416 million. The estimated fair value was determined to be $457 million based on the expected sale price of the business and estimated closing adjustments, less costs to sell. Accordingly, no loss on held for sale net assets has been recognized for the twelve months ended June 30, 2026.


	June 30, 2026
Assets held for sale
Accounts receivable, net of allowances	$	14,558
Prepaid expenses and other current assets	9,896
Property, plant, and equipment, net	11,834
Operating lease right-of-use assets	6,892
Goodwill	327,240
Other intangible assets, net	73,209
Deferred income taxes	3,917
Prepaid taxes and other non-current assets	9,840
Total assets held for sale	$	457,386

Liabilities held for sale
Accounts payable	$	1,179
Accrued expenses	15,013
Operating lease liabilities	10,228
Deferred revenue	14,586

Other long-term liabilities	150
Total liabilities held for sale	$	41,156

We incurred portfolio review related costs associated with the MatrixCare divestiture of $7 million during the year ended June 30, 2026. Acquisition related costs are expensed as incurred and recorded within selling, general, and administrative expenses on our consolidated statements of income. We did not incur portfolio review related costs associated with the transaction during the years ended June 30, 2025, or 2024.