- 01Austco to acquire RTM for estimated $15.26m, including $9.44m upfront.
- 02RTM software operates at 600+ Australian sites.
- 03Deal aims to grow recurring revenue through global rollout.
Austco Healthcare (ASX: AHC) has agreed to acquire Brisbane-based healthcare monitoring software provider RTM in a deal carrying estimated total consideration of $15.26 million.
The binding agreement covers the owner of Real Time Monitoring Solutions and Real Time Monitoring Cloud, collectively known as RTM, whose software operates at more than 600 Australian sites.
Austco will pay approximately $9.44m upfront, with a further performance-based cash earnout currently estimated at $5.82m, although the final payment is uncapped.
The transaction represents Austco’s largest acquisition and first purchase of a software technology business, advancing its strategy to increase recurring revenue across international healthcare markets.
Healthcare Systems Monitoring
Established in 2012, RTM employs 27 people and supplies real-time monitoring, reporting, integration, installation, and maintenance services to healthcare and aged care facilities.
Its cloud-based platform identifies faults across connected nurse call, duress, access control, closed-circuit television, and building management systems, allowing operators to intervene earlier.
A vendor-independent library of more than 300 system interfaces already includes Austco’s Tacera platform, enabling integration with equipment supplied by other manufacturers.
Austco intends to market RTM Cloud through its North American, United Kingdom, New Zealand, and Asian businesses and its international reseller network.
The platform creates potential recurring software licence, maintenance, and support income from existing Austco customers and facilities using competing systems.
Earnings and Acquisition Structure
RTM generated approximately $15.6m in unaudited normalised revenue and $2.2m in normalised EBITDA in the 12 months to June 2026, equivalent to a 14.1% margin.
For the 2027 financial year, Austco expects approximately $9.1m in revenue and $1.3m in EBITDA from seven months of ownership, subject to completion timing.
The earnout will equal six times average EBITDA for the 2027 and 2028 financial years, less upfront consideration, with payment expected about 30 days after Austco releases its audited 2027–28 accounts.
Of the upfront price, $3m is expected to be held in escrow pending renewal of a key customer contract for at least 12 months, with all or part potentially returned to Austco if renewal terms are weaker or the agreement lapses.
Austco expects the acquisition to increase earnings per share immediately after completion and plans to retain RTM as a standalone Australian business through the earnout period ending 30 June 2028.
CBA Debt Facility
Austco plans to finance approximately $12.44m of combined upfront consideration for RTM and its separately agreed CareTech Systems acquisition using existing cash and a new $12m Commonwealth Bank of Australia debt facility.
It expects approximately $7.7m in cash and $5m in undrawn committed facilities after both purchases, before any later earnout payment, with no new Austco shares issued.
“We see strong demand across our global customer base for proactive system monitoring, and RTM’s platform is already proven at more than 600 sites in Australia,” chief executive officer Clayton Astles said.
“Taking it to Austco’s international customers will grow our recurring revenue and support higher customer and patient satisfaction.”
Following completion, the initial integration priorities will be operational continuity, aligned financial reporting, and the international deployment of RTM Cloud supported by Austco’s services network.
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