Intelligent Monitoring Group (IMB) M&A Announcement summary

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.