Austco Agrees to Acquire Monitoring Software Firm RTM

Austco (ASX:AHC) Healthcare has agreed to buy real-time monitoring software provider RTM, its first acquisition of a software technology company, to grow software and recurring revenue and offer the platform to its international customers.

Austco has entered a binding agreement to acquire 100% of RTM Hold Co Pty Ltd, a Brisbane-based business whose vendor-agnostic platform has more than 300 system interfaces and is deployed at more than 600 sites across Australia. Upfront cash consideration is approximately $9.44 million, of which $3.0 million is expected to be held in escrow pending renewal of a key customer contract. An uncapped cash earnout at 6.0x the average of RTM's FY27 and FY28 EBITDA, less the upfront consideration, is estimated at approximately $5.82 million on current forecasts, implying total consideration of approximately $15.26 million. For the 12 months to June 2026, RTM generated unaudited normalised revenue of approximately $15.6 million and normalised EBITDA of approximately $2.2 million. Austco expects RTM to contribute approximately $9.1 million of revenue and $1.3 million of EBITDA in FY27 and to be earnings per share accretive immediately following completion. Upfront consideration for RTM and CareTech Systems, together approximately $12.44 million, is to be funded from existing cash and a new $12.0 million Commonwealth Bank of Australia facility.

Completion, expected on or around 1 December 2026, is subject to conditions including the inter-conditional CareTech Systems acquisition, key customer consents, renewal of a key customer contract and verification of RTM's source code. The final earnout may be higher or lower than estimated.