Australian Healthcare Technology and MedTech to merge

The proposed merger between Perth-based healthcare software services Australian Healthcare Technology Ltd and MedTech Global Ltd has been formally agreed subject only to regulatory and shareholder approval.

Australian Healthcare will issue 2.25 times its current issued capital in shares to the vendors of the MedTech business as consideration for the purchase.

The initial announcement of the merger took place in December last year, however it was aborted in February due to a failure to reach agreement on issues arising out of Australian Healthcare's due diligence of the MedTech business.

Medtech has since provided Australian Healthcare with supplementary information needed to satisfy Australian Healthcare requirements on due diligence.

Australian Healthcare believe the acquisition would quadruple the scale and operational reach of it's business and would provide greater depth in management, product development and support services.

The acquisition would also enable provision of the enhanced product range to a significantly expanded combined customer basis on a much lower cost per unit basis.

At market close, Australian Healthcare's share price was 5.1 cents.