Austco Healthcare acquires RTM Hold for $15.3M

• Austco Healthcare has agreed to acquire 100% of software provider RTM Hold for an estimated total consideration of $15.3 million.
• The transaction comprises an upfront cash payment of approximately $9.4 million and a performance-based earnout estimated at $5.8 million.
• The deal expands Austco’s global software and recurring service revenue capabilities across more than 600 healthcare and aged care sites.

Austco Healthcare (ASX:AHC) has entered into a binding share purchase agreement to acquire 100% of Brisbane-based software business RTM Hold for an estimated total consideration of $15.3 million.

The transaction represents the company's first acquisition of a software technology company and its most significant acquisition to date.

Austco Healthcare stated that the acquisition is expected to grow its software and recurring service revenue, strengthen its proactive monitoring capabilities, and broaden integration functionality across its global customer base.

Under the terms of the agreement, the upfront consideration of approximately $9.4 million will be funded through existing cash reserves and a new $12 million debt facility with Commonwealth Bank of Australia.

Following the announcement, the Austco Healthcare share price was unchanged at $0.23.

The target company provides real-time monitoring, reporting, and systems-integration software that features a library of over 300 system interfaces deployed across more than 600 sites.

The transaction remains interdependent with the company's simultaneous acquisition of CareTech Systems.