Intelligent Monitoring broadens national reach with Dataline Visual Link acquisition

Intelligent Monitoring (ASX: IMB) will pay $7 million to acquire all shares in electronic security solutions provider Dataline Visual Link.

The deal is being conducted through subsidiary ADT Security Group and will expand its operating footprint in Western Australia, strengthening the national platform for its commercial and enterprise business.

Perth-based Dataline provides high-quality security equipment including closed-circuit TV, access control systems and specialist detection and surveillance technology, as well as monitoring and maintenance services.

Capital raising

Consideration for the acquisition will comprise $5 million in cash to Dataline plus $2m in deferred Intelligent shares and it is expected to be immediately accretive, contributing $1.9 million in pro forma EBITDA for the 2024 financial year.

Intelligent will fund the Dataline purchase from proceeds of a $20m placement involving the issue of 41.7 million shares priced at $0.48 each to new and existing institutional investors.

The placement price represented a 4% discount to Intelligent’s last closing price of $0.50 per share on 4 November and a 17.4% discount to the five-day volume-weighted average price of $0.58 per share up to 4 November.

Improved free-float

Concurrent with the placement, Black Crane Asia Pacific Opportunities Fund sold approximately 15.6 million of its Intelligent shares to existing and new investors via a selldown to facilitate greater free-float and liquidity.

The sale leaves Black Crane holding approximately 36.7% equity in the company and the fund has committed to not selling additional shares in Intelligent within the next six months.

A share purchase plan is being offered to eligible Intelligent shareholders to raise a further $3m.

Business growth

Managing director Dennison Hambling said the Dataline acquisition would benefit the growth of ADT’s business, which the group acquired in August 2023.

“We believe the addition of quality businesses and customers will help unlock ADT’s commercial potential as it seeks to return to its historical levels of $125m in annual revenue and beyond,” he said.

Intelligent is also in discussions to acquire other targeted operations across Australia and New Zealand, which have the potential to contribute additional EBITDA on a run-rate basis.

“The acquisition of Dataline is an important piece in helping our group build a complete network of security technicians across Australia and New Zealand to support our enterprise and commercial customers,” Mr Hambling added.