Imdex (IMD) M&A Announcement summary

Deal rationale and strategic fit

• Acquisition broadens the sensor portfolio and integrates leading optical, acoustic, and rock property sensors, enhancing digital earth knowledge and subsurface intelligence capabilities.

• Expands digital offerings by integrating industry-standard WellCAD software, creating a unified, open platform for recurring digital revenue.

• Strengthens position in subsurface intelligence and enables entry into adjacent markets such as infrastructure, civil, environmental, groundwater, and energy.

• Complements existing product lines and strategy to deliver high-resolution subsurface data, providing a broader suite of solutions for rock characterization and geophysical data.

• ALT and MSI are recognized as market leaders in borehole televiewer technology and geoscience data processing.

Financial terms and conditions

• Upfront payment of €55.8m (~A$98.9m) for 100% of ALT and MSI, with performance-linked deferred consideration up to €20m (~A$35.4m), including €2.5m for technology deployment.

• Funded from cash reserves and existing debt, with a pro forma Net Debt/FY25 Normalised EBITDA of 1.1x post-completion.

• Expected to contribute ~A$10 million in incremental revenue and ~A$2 million normalised EBITDA in FY26.

• EPS accretive in the first full fiscal year of ownership, before synergies.

• Recognition of goodwill (~A$60m) and acquired IP (~A$30m); capex and interest/amortisation costs to increase by ~A$1m and ~A$2m, respectively.

Synergies and expected cost savings

• Revenue synergies from leveraging global sales networks, advancing WellCAD SaaS conversion, and integrating platforms for enhanced insights.

• Cost efficiencies through combined engineering teams, manufacturing optimization, IT integration, and enhanced back-office operations.

• Substantial growth synergies anticipated from combining world-class technologies and global client networks.

• Integration expected to drive recurring digital revenue and empower faster, smarter decisions for customers.

• Opportunity to accelerate growth in rental models and next-generation geophysics systems.