SYDNEY, AUSTRALIA: Austco Healthcare Limited (AHC:ASX), a leading provider of healthcare communication and clinical workflow management solutions, has announced the successful purchase of the business and assets of Teknocorp Australia Pty Ltd and its related business Victorian Monitoring Services, a security and healthcare solutions provider and a certified Austco Nurse Call reseller for over 20 years.

The acquisition of Teknocorp will enable Austco to strengthen its direct sales capability, accelerate its growth and enhance its range of solutions to better meet the needs of the Australian healthcare market. The acquisition will also provide significant revenue synergies, such as cross-selling products and services, streamlining operations and pursuing larger opportunities.

Teknocorp has a client base of 300 small and medium-scale enterprises in public and private sectors, predominantly operating in the healthcare, aged-care, maintenance and construction industries in Melbourne, Victoria. Teknocorp specialises in integrated nurse call, security, access control and complementary systems in health and various other sectors.

Austco will integrate Teknocorp’s business into its existing operations and retain personnel to ensure a smooth transition for customers and employees, while also positioning the company for growth and increased profitability. Austco will also leverage Teknocorp’s expertise to provide a comprehensive and fully integrated low-voltage solution for its customers.

The acquisition was completed on a debt-free basis, and included an upfront cash payment of $1.9 million, the issue of $0.7 million worth of ordinary shares in Austco subject to voluntary escrow until April 2025, and an earnout amount based on the annualised EBITDA of Teknocorp for the period from completion to December 2024 multiplied by 3.5.

The CEOs of both companies expressed their excitement and support for the acquisition, saying that it will create exceptional value for their customers and shareholders. They also highlighted the growing demand for healthcare communication and clinical workflow management solutions, especially in the wake of the COVID-19 pandemic.

Clayton Astles, CEO of Austco, said: “We are thrilled to announce the successful acquisition of Teknocorp, which marks another step in Austco’s continued growth and commitment to delivering exceptional value to our customers. We are excited about the possibilities ahead and are confident that this strategic move will strengthen our position in the market and enable us to better serve our customers.”

Robert Portelli, CEO and Director of Teknocorp, said: “We are excited to join forces with Austco Healthcare through this acquisition, which represents a significant opportunity for our team and our clients. This strategic move allows us to combine our expertise in delivering innovative solutions to our customers. We are grateful for the trust our clients have placed in us over the years and want to assure them that this acquisition will only enhance the value we provide.”

Austco Healthcare to buy security and healthcare solutions provider Teknocorp