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Austco Healthcare Limited (ASX:AHC)

ALERT: Price-sensitive ASX Announcement for AHC
Current share price for AHC : $0.265 0.035 (15.22%)+
Announcement
Release
16 Oct 2026 9:16AM
Price at Release
$0.230
Full Release
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Summary
Austco Healthcare Limited announced on 16 October 2026 that it had entered into a binding share purchase agreement to acquire 100% of RTM Hold Co Pty Ltd, comprising Real Time Monitoring Solutions Pty Ltd and Real Time Monitoring Cloud Pty Ltd, a Brisbane-based provider of real-time monitoring, reporting and systems-integration software for healthcare and aged care facilities, in what Austco described as its largest acquisition to date and first software technology acquisition; the deal is intended to accelerate Austco’s software and recurring revenue growth, enhance proactive monitoring and maintenance, broaden integration capability across its global installed base and support international expansion of RTM Cloud through Austco’s operations in North America, the United Kingdom, New Zealand and Asia, as well as its reseller network; the transaction includes upfront cash consideration of about $9.44 million subject to completion adjustments, with $3.0 million potentially held in escrow pending renewal of a key customer contract, plus an uncapped earnout based on 6.0 times the average of RTM’s FY27 and FY28 EBITDA less the upfront consideration, currently estimated at about $5.82 million for total estimated consideration of about $15.26 million; Austco said RTM’s vendor-agnostic platform has more than 300 system interfaces including with Austco’s Tacera platform and is deployed at more than 600 Australian sites, while RTM generated unaudited normalised revenue of about $15.6 million and EBITDA of about $2.2 million for the 12 months to June 2026, and is expected to contribute about $9.1 million in revenue and $1.3 million in EBITDA to Austco in FY27 based on seven months’ ownership; the acquisition is expected to be immediately earnings per share accretive, funded from existing cash and a new $12.0 million Commonwealth Bank facility, and is expected to complete on or around 1 December 2026 subject to conditions including simultaneous completion of Austco’s CareTech acquisition, customer consents, renewal of the key contract, executive service agreements with key personnel, software source code verification and no material adverse change.
Key Points
  • Austco Healthcare announced a binding agreement to acquire 100% of RTM Hold Co Pty Ltd, including Real Time Monitoring Solutions Pty Ltd and Real Time Monitoring Cloud Pty Ltd.
  • The acquisition is Austco’s largest to date and its first acquisition of a software technology company.
  • RTM provides real-time monitoring, reporting and systems-integration software for healthcare and aged care facilities.
  • RTM’s vendor-agnostic platform has more than 300 system interfaces, including integration with Austco’s Tacera platform, and is deployed at more than 600 sites across Australia.
  • Upfront cash consideration is approximately $9.44 million, subject to customary completion adjustments.
  • $3.0 million of the upfront consideration may be held in escrow pending renewal of a key customer contract, with a 24-month longstop date.
  • A performance-based cash earnout is payable based on RTM’s FY27 and FY28 EBITDA and is currently estimated at approximately $5.82 million, implying total estimated consideration of approximately $15.26 million.
  • The earnout is uncapped and will be calculated at 6.0 times the average of RTM’s FY27 and FY28 EBITDA less the upfront consideration.
  • Austco expects the acquisition to be earnings per share accretive immediately following completion.
  • RTM generated unaudited normalised revenue of approximately $15.6 million and EBITDA of approximately $2.2 million for the 12 months to June 2026.
  • Subject to completion timing, RTM is expected to contribute approximately $9.1 million of revenue and $1.3 million of EBITDA to Austco in FY27.
  • Austco intends to fund the upfront consideration using existing cash reserves and a new $12.0 million debt facility with the Commonwealth Bank of Australia.
  • Following completion of both RTM and CareTech acquisitions, Austco expects to have approximately $7.7 million of cash and $5.0 million of undrawn committed facilities available.
  • Austco plans to use RTM Cloud across its international operations and reseller network to grow recurring software and service revenue.
  • RTM will operate as a standalone business within Austco’s Australian operations during the earnout period to 30 June 2028.
  • Completion is expected on or around 1 December 2026 and is subject to conditions including simultaneous completion of the CareTech acquisition, customer consents, key contract renewal, executive services agreements, source code verification and no material adverse change.
IMPORTANT NOTE: This information is autogenerated and has not been reviewed for accuracy or completeness. You should refer to the full announcement here for further information.