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Intelligent Monitoring Group (IMB) investor relations material
Intelligent Monitoring Group M&A Announcement summary
Complete event summary combining all related documents: earnings call transcript, report, and slide presentation.Deal rationale and strategic fit
Acquisition of Tyco New Zealand (Wormald), Red Wolf Security, and Bluesky Holdco expands commercial and enterprise reach in New Zealand, reinforcing higher-value positioning and adding differentiated technology and contracted customer relationships.
Builds New Zealand's strongest fire and security platform, extending client, product, and geographic reach, and unlocking cross-sell growth between highly contracted customer bases.
Strategic focus on leveraging modern technology, especially Edge AI security solutions, to accelerate growth and cross-sell advanced services.
Strengthens competitive advantage through compliance-driven operations, advanced monitoring, and national coverage across Australia and New Zealand.
Businesses acquired have a history of stable performance and minimal expected disruption due to prior association with the seller.
Financial terms and conditions
Purchase price is NZ$45 million (A$40 million), funded through a mix of cash, debt, and existing banking facilities, with pro forma net debt to EBITDA of ~1.9x, within the board's targeted leverage range.
Pro forma annualised EBITDA expected to increase to $53-57 million for FY26, with EPS accretion of 28.3% and new EPS guidance range of AUD 0.066–0.074.
Recurring revenue increases by 56.8% to AUD 16 million per month post-deal.
Gross debt rises to AUD 120 million, drawing AUD 35 million from the acquisition facility.
Transaction is subject to customary working capital, cash, and debt adjustments at completion.
Synergies and expected cost savings
No explicit synergies or cost savings have been factored into the transaction model, but optimism exists for cross-selling security technology to fire services clients and leveraging customer scale and technical knowledge.
Unlocks cross-sell growth by combining two highly contracted fire and security customer bases.
Potential for margin improvement in fire services, currently at 24% gross margin, seen as an opportunity for future upside.
Pro forma annualised revenue projected at $318 million and EBITDA at $53-57 million, with EPS up 24.6-28.3% from prior guidance.
Acquisition is expected to enhance profitability and growth prospects across Australasia.
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