ASX-listed Intelligent Monitoring Group in Perth said it has bought the entire customer base of Victorian security operator Bellrock Group, for $415,000 in cash.
Bellrock Group entered voluntary administration in December last year, managed by Westburn Advisory in Sydney.
The acquired customers are a mix of direct and wholesale ones, and IMG estimates the acquisition could add more than $1.4 million in sales annually, and over $300,000 in earnings before tax.
IMG said the approximate price per monitored customer, $370, "is the lowest price paid by IMG in its history and is significantly earnings accretive."
Bellrock customers will be integrated into IMG's Patriot monitoring platform, which the company expects to be done by the middle of this month.
IMG managing director Dennison Hambling said his firm is seeing more and more independent security companies looking to retire, or for succession options.
"While this is a unique and opportunistic acquisition we believe IMG is positioned as the only significant funded Australian backed business, with scale to provide a sustainable pathway for the over 2,000 Australian independent security providers, to exit," Hambling said.
"Due to the numbers expected to retire in the next five years, IMG is prioritizing, in the first instance, providers with whom we have an existing working relationship and encourage anyone thinking about retirement to move to IMG to provide the most likely chance of a financial settlement and solution when the time is right," he concluded.
IMG bought Advanced Inland Security in July last year, and Monitored 24/7 earlier this year.
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