Acquisition of long-standing South Australian reseller extends Austco’s direct sales presence
PORT MELBOURNE: Austco Healthcare Limited (ASX: AHC) announced Monday that its wholly owned subsidiary, Austco Communication Systems Pty Ltd, has entered into a Share Purchase Agreement to acquire 100% of the shares in Medical Communications Systems Pty Ltd (MCS), its certified reseller in South Australia.
The acquisition, valued at approximately $2.88 million, continues Austco’s strategy of acquiring established resellers to strengthen its direct sales capability in the Australian healthcare market. The move follows the successful integrations of Teknocorp in 2023, Amentco in 2024, and G&S Technologies in 2025.
Transaction Details
Under the binding agreement, Austco will acquire MCS on a cash-free, debt-free basis for a total consideration of roughly 3.5 times MCS’s normalized EBITDA. The upfront cash payment is approximately $2.24 million, subject to customary working capital and net debt adjustments, with an additional performance-based earnout estimated at $0.64 million.
The earnout is calculated at 3.5 times MCS’s FY27 EBITDA, annualized from completion through June 30, 2027, less the upfront consideration. The final amount will be payable in cash following the finalization of Austco’s audited FY27 accounts and may vary based on MCS’s actual performance.
Financial Impact
MCS generated total revenue of approximately $3.33 million in FY26. Of that amount, roughly $1.45 million consisted of product and software purchased from Austco, which will be eliminated on consolidation. On a full-year basis, the acquisition is expected to add approximately $1.88 million of net incremental revenue and about $0.82 million of incremental EBITDA to the Group.
The company said the acquisition is expected to be immediately earnings accretive, excluding transaction and integration costs. The upfront consideration will be funded from existing cash reserves.
About MCS
Based in Morphett Vale, South Australia, MCS has been Austco’s certified nurse call reseller in the state since 2011. The company employs 12 staff and supplies, installs, and services nurse call and healthcare communication systems for healthcare and aged-care customers across South Australia.
Acquisition Rationale
Austco CEO Clayton Astles said the deal represents a natural progression for the company. “MCS has been a trusted Austco reseller in South Australia for many years, and bringing the business in-house is a natural next step,” Astles said. “This acquisition follows the same disciplined model as our last three acquisitions: strengthening our direct sales capability, deepening our customer relationships, and retaining experienced local people. The transaction structure links part of the consideration to MCS’s future performance, consistent with our approach to M&A and our focus on earnings-accretive growth.”
The acquisition is expected to strengthen direct sales capability in South Australia, continue Austco’s proven reseller-acquisition model, and retain experienced local personnel, with MCS’s key staff expected to remain with the business following completion.
Completion and Integration
Completion remains subject to customary conditions, including a new lease for MCS premises, key employees entering into new employment agreements, and the finalization of transaction documents. The acquisition is expected to close in August 2026.
MCS will operate as part of Austco’s Australian operations. Initial integration priorities will focus on customer and employee continuity, alignment of financial and reporting systems, and uninterrupted service to MCS’s South Australian customers.
Austco will provide a further update on the acquisition, including its contribution to the Group, when it releases its FY26 full-year results in late August 2026.
About Austco Healthcare
Austco Healthcare Limited (ASX: AHC) is a global provider of healthcare communication and clinical workflow solutions. Founded in 1986 and headquartered in Port Melbourne, Australia, Austco supports more than 5,000 healthcare facilities across over 60 countries through its direct operations and global reseller network. Its core products include the Tacera IP nurse call platform, Medicom, Pulse Mobile, clinical workflow and real-time location services, and enterprise reporting and integration.
