Austco Healthcare (ASX:AHC) subsidiary Austco Communication Systems struck a deal to acquire Medical Communications Systems, the company's certified reseller in South Australia, for about AU$2.9 million, according to a Monday filing with the Australian bourse.

The consideration includes an upfront payment of about AU$2.2 million and a performance-based cash earnout linked to Medical Communications' fiscal year 2027 earnings before interest, taxes, depreciation, and amortization (EBITDA), per the filing.

The deal is expected to add nearly AU$1.9 million of net incremental revenue and about AU$820,000 of incremental EBITDA to Austco on a full-year basis, the company said.

The acquisition is also expected to be earnings accretive immediately following completion, which is anticipated this month subject to certain conditions that include a new lease for Medical Communications' premises.

Austco Healthcare shares rose 4% in recent Monday trade.