SYDNEY: Intelligent Monitoring Group (IMG) subsidiary ADT has entered into a binding sale and purchase agreement today to acquire all of the shares in DVL.
DVL is a Perth based provider of high-quality and leading-edge electronic security solutions, including: CCTV equipment, security and access control equipment, specialist detection and surveillance equipment, as well as monitoring and maintenance services.
DVL customises solutions to help businesses solve complex security and technological challenges, and are specialists in remote and sensitive environments.
ADT will pay $7 million for the acquisition, comprising $5 million in cash consideration and $2 million deferred until 30 June 2025 in IMG shares, subject to customary working capital, cash, and debt adjustment.
Completion of the acquisition is conditional upon IMG receiving formal approval for the acquisition from its financiers, as well as certain other customary conditions in ADT’s favour.
Subject to satisfaction of these conditions, IMG is targeting completion of the acquisition to occur prior to 30 November 2024.
Additionally, IMG has commenced negotiations, or is in ongoing discussions, to acquire several targeted operations across Australia and New Zealand.
The acquisitions, should they all complete, have the potential to contribute additional EBITDA on a run-rate basis.
Managing Director Dennison Hambling said, “This acquisition is a further important piece in helping IMG, through ADT, (re)build a complete network of security technicians across Australia and New Zealand to support our enterprise and commercial customers.
Having already lifted ADT’s commercial business from $2m revenue, in the year prior to IMG’s acquisition of ADT, to a run rate of $12m p.a. by the end of June 2024, the addition of these quality businesses, customers, and people will further help unlock ADT’s commercial business as it seeks to return to its historical levels of $125m annual revenue and beyond.
Together with the successful acquisitions of ACG & AAG in July, DVL will help unlock further customer work that is under discussion and help IMG continue to build what is a strong organic growth profile.
IMG is guiding for underlying EBITDA to be above $38m for FY25 (before any contribution from the acquisitions).
Adjusting for the +$7.9m P&L impact of the 3G transition in FY24, the FY25 guidance represents an underlying EBITDA growth rate of 17%. DVL is expected to contribute additional EBITDA of $1.9m on a pro-forma basis.
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