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Australian security company Intelligent Monitoring Group (ASX: IMB) has entered a binding agreement to acquire ADT's UK residential security business from Johnson Controls International plc for £180 million ($347 million), a transformational deal that is expected to triple the company's earnings.
The acquisition, announced today, marks Intelligent Monitoring Group's (IMG) entry into the United Kingdom market and adds more than 160,000 residential security customers to its portfolio.
The deal values ADT UK at 4.2 times forecast FY26 EBITDA, assuming no synergies are realised.
Under the terms of the agreement, IMG will pay £155 million ($299 million) in cash and £25 million ($48 million) in IMG shares, with the scrip component capped at 19 per cent of shares on issue.
“The acquisition of ADT UK Residential represents a compelling opportunity for IMG to add a highly established and recognised residential security platform, supported by a strong recurring revenue base and long-standing customer relationships," says IMG's managing director Dennison Hambling.
"Following the acquisition of ADT's businesses in Australia and New Zealand in 2023, IMG has developed a unique understanding of ADT's operating model and brand.
"This experience underpins our confidence in both the quality of the asset and IMG’s ability to effectively integrate, operate and grow the business.
"The transaction provides IMG with immediate scale and market presence in the UK, while establishing a platform to support future organic growth initiatives, including the rollout of advanced monitoring and video security solutions."
Hambling says ADT UK Residential will continue to operate as a standalone business post-completion, with IMG expecting an "orderly and disciplined transition process given its established operating model".
"This acquisition represents a further step in IMG’s strategy to build a scaled, diversified security, monitoring and life -safety solutions platform with resilient recurring revenues and attractive long -term growth across key markets,” he says.
ADT UK generated £87 million ($168 million) in revenue over the year to July 2025, with a 49 per cent EBITDA margin and 93 per cent recurring revenue.
The business provides monitored home security services across the United Kingdom under the ADT brand, one of the most recognised names in the global security industry.
IMG is financing the cash component through a four-year $448 million unitranche debt facility provided by Ares Capital Corporation, at a margin of 6 per cent over the base rate, equating to a funding cost of 10.2 per cent per annum.
On a pro forma basis, IMG's annualised EBITDA is expected to rise about 300 per cent to $130 million, up from standalone FY26 guidance of $43 million to $47 million.
IMG acquired the ADT-branded Australian and New Zealand security operations in 2020 and has since grown those businesses significantly.
The combined group will operate across Australia, New Zealand and the UK, with a heavily recurring revenue base and a significant installed customer footprint.
IMG says the ADT UK business offers further growth opportunities through cross-selling, technology investment and operational efficiencies, though it has not factored synergies into the stated acquisition multiple.
Completion is expected in the first half of 2027, subject to shareholder and regulatory approvals.
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