Company Interview / IMB's strategic NZ buyout set to ignite returns

Key Points:

Intelligent Monitoring Group acquires Tyco New Zealand and Red Wolf (ASX:IMB) Acquisition expected to deliver 28% EPS accretion and strengthen commercial enterprise reach NZ$45 million deal funded by debt and cash, with NAB providing key financial support No immediate plans for global expansion beyond Australia and New Zealand

Intelligent Monitoring Group (ASX:IMB) is set to expand its footprint in New Zealand after entering a binding agreement to acquire fire protection business Tyco New Zealand, operating under the Wormald brand, and security provider Red Wolf from Blue Sky Holdco. Dennison Hambling states that Tyco is a leading fire services player, while Red Wolf specialises in high-security services with a strong government focus based in Wellington. Hambling views this dual acquisition as a significant opportunity for Intelligent Monitoring Group to strengthen its presence among enterprise commercial clients in New Zealand, reflecting the company's ongoing strategy since purchasing the ADT business.

The transaction, valued at NZ$45 million (approximately A$40 million), is expected to deliver 28% EPS accretion and “very attractive” valuation metrics. Hambling highlights that the acquisition is funded through a mix of debt and cash, supported by a facility from NAB. Guidance has now been provided down to the EPS level for the first time, with expectations post-acquisition at the bottom range of 6.8 cents per share, excluding customer base amortisation.

Hambling remarks that Intelligent Monitoring Group remains conservatively geared and focused on cash generation. He acknowledges global interest in the company's technological transformation, but indicates any international expansion outside Australia and New Zealand would require a highly strategic opportunity.