Austco Healthcare to acquire CareTech for $4M
- Austco Healthcare agrees to acquire 100% of CareTech Systems for up to $4 million.
- The transaction includes an upfront cash payment of $3 million funded through cash reserves and a new debt facility.
- CareTech brings a portfolio of lower-cost aged care systems and wireless products across roughly 200 sites.
Austco Healthcare (ASX:AHC) has entered into a binding agreement to acquire 100% of Brisbane-based CareTech Systems for an estimated total consideration of $4 million.
The purchase expands the company's nurse call portfolio with lower-cost aged care and wireless systems currently installed across approximately 200 sites.
The acquisition delivers owned products and intellectual property rather than reseller distribution rights.
Under the agreement terms, Austco will pay an upfront cash sum of $3 million alongside an estimated $1 million performance earnout based on future earnings multiples.
The transaction will be funded via existing cash and a new $12 million debt facility with Commonwealth Bank of Australia, while the Austco share price was unchanged at $0.24 following the announcement.
The agreement is inter-conditional with the acquisition of RTM Hold and is targeted to be completed on or around Dec. 1.
The valuation multiple of 3.5 times EBITDA aligns with Austco's recent strategic acquisitions of Teknocorp, Amentco, G&S Technologies, and Medical Communications Systems.
