Austco Healthcare Acquiring Amentco For $A10.6 Million.
Austco Healthcare Acquiring Amentco – Austco Healthcare has entered a conditional binding term sheet to purchase Queensland-based Amentco Enterprise Group, a leading provider of integrated communication and security systems for Australian healthcare facilities.
Amentco designs and installs integrated solutions that help enhance patient care, improve efficiency and minimise risk. Amentco is a systems Integrator specialising in the installation, service and maintenance of nurse call, customised workflow, real-time locating (RTLS) security, CCTV and access control systems.
Its customer base consists of enterprises in public and private sectors, predominantly operating in healthcare, and aged-care, sectors across Queensland, Australia.
Austco was established in Perth, Australia in 1986 and is now headquartered in Dallas, Texas. According to the company, it builds the most advanced nurse call and clinical communications technology in the world, with more than 5000 installations in 60 countries.
Austco Healthcare Acquiring Amentco
Amentco will be acquired on a cash-free, debt-free basis for a total purchase price of $10,600,000 (purchase price) based on 3.5 times financial year (2023 EBITDA and will be subject to customary completion adjustments for working capital, any net debt assumed and an earnout.
The purchase price will be satisfied through an upfront cash payment (subject to adjustments) of $5,000,000 (upfront cash), the issue at completion of $2,000,000, of Austco shares, and an earnout amount calculated on the annualised FY24 EBITDA and FY25 EBITDA of Amentco multiplied by 3.5 times less the upfront payment.
“This merger presents exciting opportunities and synergies that will benefit our customers and stakeholders,” said Amentco’s managing director Neil Eaton.
“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.”
The acquisition of Amentco aligns with Austco’s strategic objectives of expanding its direct sales capability, driving accelerated growth, and enhancing its portfolio of solutions to better serve the Australian healthcare market.
Unlike other regions within the Austco Group, which already employ a direct sales model alongside resellers, Australia’s market structure relies heavily on state-based resellers. By integrating Amentco into its operations, Austco aims to enhance its direct sales approach, extend its market reach, and establish a more unified presence across the country.
Austco Healthcare Acquiring Amentco
“We are excited to announce our intention to acquire Amentco, a pivotal move in Austco’s growth and expansion strategy within Australia,” said Austco Healthcare CEO Clayton Astles.
“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.”
The acquisition is subject to the share consideration being subject to voluntary escrow for the period of the earnout, retention of key employees, assignment of key customer and supplier contracts, regulatory consents and approvals and Austco finalising its financial and legal due diligence; and agreeing on final form transaction documents. The acquisition is expected to be completed early in Q4 of FY24.
There’s more information about Amentco here, about Austco here and more SEN news here.
“Austco Healthcare Acquiring Amentco For $A10.6 Million.”
