Austco Healthcare to acquire CareTech Systems for $3.0m upfront
Austco Healthcare (ASX: AHC) has announced that its wholly owned subsidiary, Austco Communication Systems Pty Ltd, has entered into a binding share purchase agreement to acquire 100% of CareTech Systems Pty Ltd. CareTech is a Brisbane-based designer of nurse call products and systems for aged care and smaller hospital customers.
The upfront cash consideration is $3.0 million, subject to customary completion adjustments. Including an estimated earnout of approximately $1.04 million, estimated total consideration is approximately $4.04 million.
The deal is inter-conditional with Austco’s acquisition of RTM Hold Co Pty Ltd, also announced on 16 October 2026. The company expects the CareTech acquisition to be earnings per share accretive immediately following completion, with completion expected on or around 1 December 2026.
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What CareTech adds to Austco’s portfolio
Owned products and intellectual property
CareTech designs and owns its product range. Unlike Austco’s previous acquisitions of resellers, the CareTech acquisition adds products and intellectual property, so Austco captures the full product margin.
The range includes:
- Call points
- Pendants
- Mats
- Wireless (radio) devices
- Real-time location tags
- Complete IP-based systems
The business has operated in the nurse call industry for more than 25 years, with systems installed at approximately 200 sites. Its products are built by a contract manufacturer.
RTM is CareTech’s largest customer, and CareTech’s systems are already monitored through RTM’s platform.
Six strategic rationale points
Austco outlined six expected benefits of the acquisition:
- A complete offer from the bedside to the whole site, together with RTM.
- A broader owned nurse call portfolio.
- Wireless products that fill a gap in Austco’s range.
- Increased access to aged care and hospital customers.
- Ownership of CareTech’s intellectual property.
- Retention of experienced personnel, with key technical staff expected to remain under an executive services agreement.
CareTech’s lower-cost system is described as complementing Austco’s Tacera platform for larger and acute facilities. The wireless products can be offered through Austco’s international operations, subject to local certification.
Clayton Astles, CEO
“CareTech is a strong strategic fit with Austco. It broadens our in-house nurse call portfolio with a lower-cost system designed for aged care and adds wireless products we do not currently offer. Together with RTM, it gives us an integrated offering from the bedside to real-time monitoring of every system on site…”
Educational: why owned nurse call technology matters
A nurse call system lets patients or residents alert carers when they need help. Call points, pendants and mats are the devices that trigger those alerts.
When a company resells another firm’s products, it typically earns a reseller margin. When it owns the product design and intellectual property, it captures the full product margin, which is the distinction Austco draws between its earlier reseller acquisitions and CareTech.
For investors, ownership of the intellectual property is the relevant point. Austco also expects CareTech’s installed systems and customer relationships to create opportunities for service, maintenance, upgrade and cross-selling activity.
CareTech financials and deal structure
Financial snapshot
The figures below are unaudited and cover the 12 months to June 2026, except for the FY27 contribution.
| Metric | Figure | Basis | Notes |
|---|---|---|---|
| FY26 revenue | $3.4M | 12 months to June 2026, unaudited | Includes sales to RTM |
| Sales to RTM | $1.5M | 12 months to June 2026, unaudited | Would be eliminated on consolidation for external reporting |
| Normalised EBITDA | Approx. $0.9M | 12 months to June 2026, unaudited | Normalised |
| EBITDA margin | Approx. 26% | 12 months to June 2026, unaudited | Based on the figures above |
| FY27 contribution | Approx. $1.1M net revenue and $0.5M EBITDA | Expected, subject to completion timing | Reflects seven months of ownership, after eliminating sales to RTM |
Earnout and multiple
The performance-based cash earnout is calculated at 3.5x the average of CareTech’s FY27 and FY28 EBITDA, less the upfront consideration. Based on current forecasts, it is estimated at approximately $1.04 million.
The earnout is uncapped and will be payable in cash approximately 30 days after release of Austco’s audited FY28 accounts. It may be higher or lower depending on CareTech’s performance.
The 3.5x multiple is consistent with Austco’s previous acquisitions of Teknocorp, Amentco, G&S Technologies and Medical Communications Systems.
The MCS reseller acquisition was struck at the same 3.5x EBITDA multiple, with a performance-linked earnout alongside the upfront cash, so the CareTech terms follow an established template rather than a new pricing approach.
Funding, conditions and next steps
Including the RTM acquisition, Austco expects total upfront acquisition consideration of approximately $12.44 million. This is to be funded from existing cash reserves and a new $12.0 million Market Rate Loan facility with the Commonwealth Bank of Australia.
The record FY26 results, with revenue of $94.2 million and no material borrowings before this deal, show why management could fund the upfront payments from cash reserves and a modest new facility.
No Austco shares will be issued, and the upfront consideration and the earnout are payable in cash. Following completion of both acquisitions, Austco expects approximately $7.7 million of cash and $5.0 million of undrawn committed facilities, before any subsequent earnout consideration.
Completion is subject to conditions precedent customary for a transaction of this nature, including:
- Simultaneous completion of the RTM Hold Co Pty Ltd acquisition
- A manufacturing agreement with CareTech’s contract manufacturer
- An executive services agreement with key CareTech personnel and a management agreement between CareTech and RTM
- Release of security interests and repayment of secured debt
- No material adverse change
On integration, CareTech will operate as part of Austco’s Australian business and continue to sell under its own brand in Australia. Its engineering will be brought into Austco from completion, and any international offering of its products is subject to local certification.
Completion is expected on or around 1 December 2026, at the same time as the RTM acquisition.
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