Austco Healthcare to acquire CareTech Systems
Key points
- Expands Austco's nurse call portfolio with lower-cost aged care system
- Adds wireless products to Austco's offerings
- Acquisition expected to be earnings per share accretive immediately
Full summary
Austco Healthcare Limited (ASX: AHC) has announced its plan to acquire CareTech Systems Pty Ltd, a Brisbane-based designer of nurse call products and systems for aged care and smaller hospital customers. The acquisition aims to broaden Austco's owned product portfolio with a lower-cost, aged care-focused system and wireless products, strengthening Austco's care communications platform. The acquisition is inter-conditional with Austco's acquisition of RTM Hold Co Pty Ltd, also announced today. The upfront cash consideration is $3.0 million, with a performance-based cash earnout estimated at approximately $1.04 million based on current forecasts, implying estimated total consideration of approximately $4.04 million. The acquisition is expected to be earnings per share accretive immediately following completion.
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