Intelligent Monitoring Group (IMB) M&A announcement summary

Deal rationale and strategic fit

• Acquisition of Wormald NZ and Red Wolf expands commercial scale, service capability, and market presence in New Zealand, adding over 300 staff and 12 branches.

• Builds New Zealand's strongest fire and security platform, expanding client, product, and geographic reach across enterprise and government sectors.

• Wormald brings a dominant market share in fire suppression, servicing about 28% of NZ commercial buildings, while Red Wolf adds high-security capabilities, especially for government and military clients.

• Unlocks cross-sell growth by combining highly contracted fire and security customer bases and leveraging synergies.

• Adds established, market-leading businesses with strong recurring revenue and long-standing customer relationships.

Financial terms and conditions

• Acquisition settled for approximately A$37m (NZ$45m) on 29 May 2026, funded via a drawdown of an AUD 35 million acquisition facility, company cash flow, and a A$20m equity raise at $0.58 per share.

• The acquisitions are expected to add over AUD 10 million in earnings and increase pro forma EBITDA to AUD 53–57 million for FY26.

• The deal is accretive, adding over 20% to earnings per share, with proforma EPS forecasted at a minimum of $0.062, up 20.9%.

• Pro forma net debt to EBITDA expected at ~1.6x, within targeted leverage range.

• Purchase price includes customary adjustments for working capital and cash on hand.

Synergies and expected cost savings

• Integration enables cross-leverage of customer bases and technology platforms, accelerating up-sell and cross-sell opportunities.

• Enhanced operational scale and technical capability to improve margin mix and recurring revenue quality.

• Shared facilities and operational centers in Auckland simplify management and foster collaboration between fire and security teams.