AYSDNEY, AUSTRALIA: Intelligent Monitoring Group Limited (IMG) entered into binding sale and purchase agreements to acquire two key entities: Everjazz Pty Limited (also known as the “Alarm Assets Group” or “AAG”) and ACG Integration Pty Ltd (ACG).
IMG will acquire all the shares in AAG and ACG from separate private vendors. The cash consideration for these acquisitions totals $15.9 million, subject to customary adjustments for working capital, cash, and debt amounts upon completion.
These acquisitions are expected to contribute significantly to IMG’s financials, with an additional FY24 proforma EBITDA of $5.7 million. The acquisition multiple (EV/EBITDA) stands at an attractive 2.8x.
AAG and ACG bring more than 35 skilled technicians into IMG’s fold, enhancing national coverage and unlocking capacity for continued growth in IMG’s commercial business. Both companies boast a blue-chip client base, including ASX 100 companies and large government clients.
Intelligent Monitoring Group will finance the acquisitions by issuing approximately 60.4 million new shares at a price of $0.32 per share, raising approximately $19.3 million. This move is expected to be highly EPS accretive.
Beyond immediate gains, these acquisitions position IMG favorably for potential refinancing of existing debt, leading to a reduction in interest costs in CY25.
The acquisitions are subject to various conditions, including formal approval from IMG’s financiers. IMG aims to complete both acquisitions by 30 June 2024.
Managing Director Dennison Hambling said, “These acquisitions are highly beneficial and timely additions to the ADT business in Australia. 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 help unlock ADT’s commercial business further as it seeks to return to its historical levels of $125m revenue and beyond.
IMG now looks forward to bringing these businesses into its operations, along with the recently acquired Adeva business (trading as Signature Security) and a clean 1HFY25 from which we intend to undertake a refinancing of IMG’s existing financing arrangements.
IMG is very thankful to its existing investors for their ongoing support in building what we envisage being the best security services business offering in Australasia. Following today’s placement, IMG also warmly welcomes several new institutional investors onto the register.”