ASX-listd Intelligent Monitoring Group has moved to strengthen its Queensland presence through an $8.9 million acquisition of security systems provider KOBE.
The deal sees IMG's subsidiary ADT Security Group pay an initial $6.98 million in cash, with a deferred payment of approximately $1.92 million subject to KOBE meeting earnings targets for the 2026 financial year.
KOBE, established in 1999, provides advanced security systems for government, mining, industrial, retail and other commercial customers primarily in Queensland.
The company is expected to generate earnings of approximately $2.5 million in FY25.
The acquisition continues IMG's aggressive expansion of its commercial security business.
Under IMG's ownership, ADT's commercial revenue has grown from $2 million to a current annualised turnover exceeding $55 million as of December 2024.
The purchase will be funded from IMG's November 2024 capital raising and is expected to be immediately earnings per share accretive.
The deal represents an enterprise value to earnings before tax multiple of 3.5 times.
"This acquisition represents yet another step in IMG's strategy to build a complete network of security technicians across Australia and New Zealand," Dennison Hambling, managing director of IMG, said.
IMG expects to complete the acquisition this quarter, subject to satisfying various conditions.
The company has maintained its FY25 earnings guidance of at least $38 million in adjusted earnings before tax, prior to including any contribution from recent acquisitions.
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