SYDNEY, AUSTRALIA: Austco Healthcare Limited (ASX:AHC), a provider of advanced technology solutions for healthcare facilities, has announced that it has agreed to buy Amentco Enterprise Group Pty Ltd, a Queensland-based systems integrator specialising in communication and security systems for healthcare and aged-care sectors.
According to a company announcement, the acquisition, which is subject to customary completion adjustments, will cost Austco $10.6 million, based on 3.5 times Amentco’s FY 2023 EBITDA. The purchase price will be paid partly in cash and partly in Austco shares, with an earnout component based on Amentco’s future performance.
Austco said that the acquisition will help it expand its direct sales capability, drive growth, and enhance its portfolio of solutions in the Australian healthcare market. It will also enable cross-selling of products and services and streamlining of operational processes.
Austco intends to merge Amentco’s business with its current operations, spanning hundreds of sites across the country. Key personnel from Amentco will be retained to ensure a smooth transition for both customers and employees.
The Acquisition is expected to be completed early in Q4 of FY24.
“We are excited to announce our intention to acquire Amentco Enterprise, a pivotal move in Austco’s growth and expansion strategy within Australia. With Amentco’s expertise and reputation in the healthcare and security communications industry, coupled with its strong customer relationships, the acquisition will boost our competitive standing and growth opportunities for Austco Healthcare. We look forward to finalising the acquisition and collaborating closely with Amentco’s team to deliver optimal outcomes for our valued customers, dedicated employees, and supportive shareholders,” remarked Austco Healthcare CEO Clayton Astles.
Commenting on the acquisition, Amentco Enterprise’s Managing Director Neil Eaton said, “This merger presents exciting opportunities and synergies that will benefit our customers and stakeholders. By uniting our strengths, we will be well-positioned to provide innovative solutions and drive growth in the Australian market.
The Amentco team is fully committed and energised to ensure a smooth transition while maintaining our focus on delivering
market-leading solutions and customer service.”