Intelligent Monitoring Group Acquires ADT UK Residential Security Business

Intelligent Monitoring Group (ASX: IMB) has entered a binding agreement to acquire ADT’s residential security business in the United Kingdom from Johnson Controls International for £180 million (A$345.6m).

The acquisition—which covers ADT UK Residential, one of Britain’s most established residential security providers—gives Intelligent Monitoring an immediate platform in one of the world’s largest monitored security markets.

The consideration comprises £155m (A$297.6m) in cash and £25m (A$48m) in IMB shares issued to Johnson Controls, subject to customary completion adjustments.

Intelligent Monitoring expects the transaction to add more than 160,000 direct customers and $12.5m per month in recurring revenue, representing a 205% increase in monthly recurring monitoring revenue.

UK Market Entry

ADT UK Residential provides monitored home security systems, smart home solutions, 24/7 monitoring, and customer support.

The business has a heritage dating back to 1874, with two UK branches, more than 400 employees, and trailing revenue of £87m (A$167m) to July 2025.

Intelligent Monitoring expects the acquisition to lift its pro forma annualised EBITDA to about A$130m, compared with FY26 guidance of A$43m to A$47m.

The company is forecasting pro forma earnings per share of A$0.09, representing an expected 40% accretion at current exchange rates.

Debt Facility Secured

Intelligent Monitoring has entered binding commitment papers for a four-year A$448m unitranche facility provided by Ares Capital Corporation.

The facility will be split between A$298m (£155m) and $150m to fund the acquisition cash component while refinancing existing facilities.

Intelligent Monitoring confirmed the transaction does not require an external equity raising beyond the vendor share consideration.

The company expects pro forma leverage of approximately 3.1 times net debt to pro forma FY26 EBITDA following completion.

Strategic Growth Platform

Intelligent Monitoring intends for ADT UK Residential to continue operating as a standalone business after completion, with an orderly transition from Johnson Controls expected and no reliance on acquisition synergies moving forward.

The company sees further growth potential through video guarding, commercial security and fire services, and AI-enabled monitoring and verification.

The acquisition, which follows IMG’s earlier purchase of ADT businesses in Australia and New Zealand, moves the group toward a broader international security services platform monitoring about 350,000 security and fire sites and employing approximately 1,500 people on a pro forma basis.

Completion is expected in the first half of 2027, with Intelligent Monitoring required to pay Johnson Controls a US$12m break fee if the acquisition agreement is terminated because IMG fails to obtain shareholder approval or otherwise fails to pay the purchase price at completion.

Monitoring Revenue Expansion

Managing director Dennison Hambling said the acquisition would add scale and a recognised residential security platform.

“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,” he said.

“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, underpinning our confidence in both the quality of the asset and IMG’s ability to effectively integrate, operate and grow the business.”

“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.”