ResMed Inc., a publicly traded medical equipment provider, will buy MediFox Dan Holding GmbH, a German health software company owned by private equity firm Hg.

San Diego-based ResMed announced the acquisition in a statement that confirmed an earlier Bloomberg News report. The takeover, which will expand ResMed into the fast-growing software space, values MediFox at about $1 billion including debt.

That makes it ResMed’s largest deal to date, according to data compiled by Bloomberg.

ResMed manufactures medical products that treat breathing disorders like sleep apnea. It generated almost 39 percent of its revenue for 2021 outside of the US, according to its latest annual report, though it doesn’t break down specific regions.

“We will expand ResMed’s SaaS business portfolio outside our current base in the US and strengthen our position as a global leader in health-care software solutions for lower-cost and lower-acuity care,” ResMed’s Chief Executive Officer Mick Farrell said in a statement.

Hg first invested an undisclosed sum in Hildesheim, Germany-based MediFox in 2018. The company was founded in 1994 and merged with Dan in 2020, Hg’s website showed.

Evercore Inc. advised ResMed on the acquisition, while Houlihan Lokey Inc. worked with the seller.