IHC will service and repair Bio-Med's air/oxygen blenders across Europe, with other third party service deals in the continent expected to follow.
The signing of the agreement will also lead to a greater awareness of the use of air/oxygen blenders in intensive care and resuscitation, said IHC.
Neil Campbell, Inspiration Healthcare's chief executive, said: "We are very pleased to have signed this agreement with Bio-Med with whom we have been working for many years.
“This will allow us to improve significantly the level of servicing of these units as well as broadening our presence in European hospitals."
WH Ireland said the deal would appeal to both new buyers and current users as the presence of a good local service agent based in the UK will reduce shipping costs and result in quicker repair turnaround times.
The broker left its forecasts unchanged, its target price is 58p, but added that IHC had expanded its service offering while in turn cementing a distribution growth platform within Europe was an encouraging development.
IHC, which specialises in products for the neonatal market, joined AIM in May through a reverse takeover of heating products group Inditherm.
Shares rose 1% to 39p.