Intelligent Monitoring Group (IMG) has announced it has agreed to acquire the customer base of Victorian Monitored Lines Business which entered Voluntary Administration in Dec 2022.
This is expected to add more than $1,400,000 of annualised sales to IMG, subject to any customer attrition, and more than $300,000 of annualised EBITDA when integrated.
This acquisition will be integrated into IMG’s existing infrastructure and IMG expects to have these customers migrated to its Patriot platform by the end of March 2023, in accordance with its agreement with the administrator.
The price is approximately $370 per monitored customer (excluding any value for the guarding operations) which is the lowest price paid by IMG in its history and is significantly earnings accretive.
The purchase of these lines follows the successful acquisition of both Monitored 24/7 early this year, and Advanced Inland Security in the middle of 2022. Both these acquisitions have been successfully integrated and delivered the accretive financial returns forecast.
AIS grew its revenue +10% and its profit +54% in 1H23 under IMG’s ownership versus the prior period.
“We are seeing more and more independent security companies looking to retire, or for succession options. Whilst 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. Due to the numbers expected to retire in the next five years, IMG is prioritising, 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,” said Managing Director, Dennison Hambling.