Austco Pays NZ$7.97M Upfront to Acquire G&S Technologies, Eyeing Growth in NZ Market

Strategic Expansion into New Zealand

Austco Healthcare Limited (ASX: AHC) has officially completed the acquisition of G&S Technologies Ltd, a New Zealand-based company known for its expertise in healthcare and security communication systems. This move marks a significant step in Austco’s strategy to deepen its presence and capabilities in the healthcare markets of Australasia.

G&S Technologies, with over 100 employees and a strong customer base exceeding 200 clients, has established a solid reputation particularly across New Zealand’s North Island. Its portfolio includes nurse call systems, real-time location tracking, CCTV, and access control solutions, all critical components in modern healthcare and aged care facilities.

Financial Structure and Deal Mechanics

The acquisition was executed with an upfront cash payment of approximately NZ$7.97 million, funded from Austco’s existing cash reserves. Additional payments will be made to adjust for working capital at completion, expected in late June 2025. Notably, the deal includes an earnout component based on G&S Technologies’ EBITDA performance through to the end of 2026, calculated at 3.5 times the annualized EBITDA during this period, less the initial cash paid.

Importantly, Austco has structured the earnout to be settled up to 75% in Austco shares, providing flexibility and aligning incentives between the two companies. This mix of cash and equity payments reflects Austco’s confidence in the future growth potential of the acquired business while managing immediate cash flow impact.

Implications for Austco’s Market Position

By bringing G&S Technologies under its umbrella, Austco is not only expanding its direct sales capabilities but also broadening its solution offerings to better serve healthcare providers. The integration of G&S’s expertise in security and communication systems complements Austco’s existing clinical workflow management solutions, potentially creating a more comprehensive product suite for hospitals and aged care facilities.

This acquisition aligns with Austco’s broader growth ambitions across Australia, New Zealand, and other international markets. It also signals a commitment to strengthening its foothold in the healthcare sector, where integrated communication and security solutions are increasingly vital for operational efficiency and patient safety.

Looking Ahead

While the upfront investment is clear, the ultimate financial impact will hinge on G&S Technologies’ performance over the next 18 months. The earnout structure introduces some uncertainty but also incentivizes strong operational results. Investors will be watching closely to see how well Austco manages the integration and leverages the expanded capabilities to drive growth.