Home / Business and Economy / IMG Buys ADT UK Security for £180M
IMG Buys ADT UK Security for £180M
3 Jul
Summary
- Intelligent Monitoring Group acquires ADT's UK residential security business.
- The deal is valued at £180 million, funded by cash and shares.
- Acquisition significantly boosts recurring revenue and EBITDA.
Intelligent Monitoring Group Ltd (IMG) has entered a binding agreement to acquire the UK residential security business of ADT for £180 million. This significant international expansion is set to substantially increase IMG's recurring revenue.
The acquisition from a subsidiary of Johnson Controls International PLC will be funded through £155 million in cash and £25 million in IMG shares. This deal provides IMG with an immediate foothold in the UK's monitored security market.
ADT UK Residential brings over 160,000 direct residential customers to IMG. The acquisition is expected to add $12.5 million per month in recurring revenue, a 205% increase. Pro forma annualised EBITDA is projected to rise to A$130 million.
IMG plans for ADT UK Residential to operate as a standalone business post-completion, with an orderly transition expected. The funding structure relies on a new debt facility and vendor equity placement, precluding a new external equity raise.
This strategic move aligns with IMG's goals of acquiring strong security businesses with established market positions. Following past acquisitions of ADT businesses in Australia and New Zealand in 2023, IMG is leveraging its experience for further growth.
