SYDNEY: Scout Security Ltd. (ASX: SCT), a white-label security-as-a-service platform, announced Wednesday it has entered into a binding agreement to acquire New York-based DIY home security innovator Roo Inc. in a merger of equals.
The deal, valued at approximately A$7.11 million, will combine Scout’s technology with Roo’s product suite, intellectual property, and distribution partnerships. The merged entity aims to create a diversified, scalable global security business.
Roo brings over 900,000 users and 29,000 paying subscribers to the combined company, contributing roughly A$1.3 million in annualized recurring revenue, in addition to hardware sales. The acquisition is expected to generate significant cost and revenue synergies, with the goal of reaching positive EBITDA and breakeven-to-positive cash flow post-integration, excluding one-time transaction costs.
“Roo’s technology and market footprint strongly complement our own,” said Ryan McCall, Managing Director of Scout Security. “This merger more than doubles our recurring revenue base and significantly expands our international presence.”
The transaction will be completed through the issuance of securities and a consolidation of the companies’ debt arrangements. Completion is conditional on shareholder and regulatory approvals, with an indicative timeline set for a shareholder meeting on Dec. 11, 2025, and acquisition completion on Dec. 12, 2025.
Scout’s securities are currently suspended from trading on the ASX. The company is preparing a proposal for reinstatement, which may include a capital raising and debt conversion.
No changes to the Scout board or management are planned as part of the transaction.