Intelligent Monitoring To Bring Back Signature Security Brand Via Acquisition

Intelligent Monitoring Group Ltd (IMG) (ASX: IMB) has signed a deal to acquire security solutions provider Adeva Home Solutions.

IMG’s acquisition of Adeva aims to bring the iconic ‘Signature Security’ business back to life in Australia.

At one time Signature was nearly the largest end-to-end security business for residential and small businesses in Australia (with nearly 100,000 customers).

Adeva acquired Signature for A$171 million in 2011.

Acquisition terms

Adeva offers a range of products and services, including access control barriers, CCTV recording, alarm systems and business intercoms.

IMG’s subsidiary Mammoth Security will acquire Adeva by paying A$0.5 million cash and issuing A$2 million worth of shares in Mammoth Security.

Importantly, the acquisition is expected to add A$9 million in revenue and A$0.8 million EBITDA to the IMG group in FY25.

Signature Security to be a stand-alone business

IMG intends to create a significant second full-service security business and brand by combining Adeva and its 40 national technicians with its existing customer base.

Signature Security will be run as a largely stand-alone business within the IMG group.

Dennison Hambling (IMG MD) and Peter Kennan (IMG Chair) will sit on the board, alongside the Adeva founders.

Targeting completion by month-end

Hambling said: “Bringing the Signature Security brand back to life is an exciting moment for IMG and Adeva (which acquired Signature for $171m in 2011 and 11.6x 2010 EBIT) and its staff, many of whom came from the Signature Security acquisition originally.”

Completion of the acquisition is conditional upon IMG receiving formal approval from its financiers, as well as certain other customary conditions in IMG’s favour.

Subject to satisfying these conditions, IMG is targeting completion on 31 May 2024.

 

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