Intelligent Monitoring Group Limited announces acquisition of Adeva and return of Signature Security

Intelligent Monitoring Group Limited (ASX: $IMB) has entered into a binding sale and purchase agreement to acquire 100% of Adeva Home Solutions Pty Ltd, subject to final IMG financier approval. The acquisition is expected to add $9m in Revenue and $0.8m EBITDA to the IMG group in FY25, representing a purchase value of 2.8x pro forma FY24 Adeva EBITDA. Additionally, IMG will return the historic and significant 'Signature Security' brand, to be operated by Mammoth Security and Adeva, with the founders of Adeva becoming General Managers of Signature Security.

Executive Commentary on Adeva Acquisition and Return of Signature Security

IMG is pleased to announce it has agreed to acquire Adeva Security and work with Adam Woolston and Evan Comb to bring the Signature Security business back to life in Australia. The intention is to create a significant second full-service security business and brand by combining Adeva and its 40 national technicians with IMS's existing customer base, generating a platform for growth. Bringing the Signature Security brand back to life is an exciting moment for IMG and its staff, and is anticipated to create a further growth platform for IMG in the in-demand security services space.

Summary of Adeva Acquisition and Return of Signature Security

Intelligent Monitoring Group Limited (ASX: $IMB) has finalized the acquisition of Adeva Home Solutions Pty Ltd, which is expected to contribute $9m in Revenue and $0.8m EBITDA to the IMG group in FY25. The acquisition represents a purchase value of 2.8x pro forma FY24 Adeva EBITDA. Additionally, IMG will return the historic 'Signature Security' brand, to be operated by Mammoth Security and Adeva, with the founders of Adeva becoming General Managers of Signature Security. The acquisition is targeted for completion on 31 May 2024, subject to formal approval from IMG's financiers and certain other customary conditions. The founders of Adeva will hold a 12.6% shareholding in Mammoth Security, with IMG having a call option over the shareholding exercisable on or before 30 June 2027 at a valuation equal to Signature Security group EBITDA multiplied by a call option multiple.