Intelligent Monitoring Group Ltd Agrees to Acquire UK ADT Residential Business
IMG enters UK security market with £180m ADT residential acquisition
Intelligent Monitoring Group (ASX: IMB) has entered into a binding agreement to acquire ADT’s residential security business in the United Kingdom (“ADT UK Residential”) from a subsidiary of Johnson Controls International plc (“JCI”), marking the company’s entry into the UK security market with a transaction valued at GBP £180 million.
The acquisition is expected to lift IMG’s pro forma annualised EBITDA by approximately 300% to A$130 million, against current FY26 guidance of A$43–47 million. It adds $12.5m per month in recurring revenue, a 205% increase, drawn from a base of more than 160,000 direct customers.
ADT UK Residential is described as one of the United Kingdom’s most established and recognised residential security providers. The transaction is forecast to be approximately 40% earnings per share (EPS) accretive, lifting pro forma EPS to 9.0 cents per share at the current GBP/AUD exchange rate.
For IMG, this represents a step-change in scale. The transaction provides IMG with immediate scale and market presence in the UK.
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Inside the transaction: consideration, funding and timeline
The total consideration of GBP £180 million comprises £155 million in cash and £25 million in IMG shares (“Consideration Shares”), payable to JCI and subject to customary completion adjustments.
Funding will be sourced through a combination of a new debt facility and the vendor equity placement. IMG has stated there is no requirement for additional external equity capital beyond the Consideration Shares.
| Deal Component | Detail |
|---|---|
| Total consideration | GBP £180m (£155m cash + £25m shares) |
| Vendor | Subsidiary of Johnson Controls International plc (JCI) |
| Debt facility | 4-year A$448m Unitranche facility from Ares Capital Corporation (split £155m + A$150m) |
| Pro forma leverage | ~3.1x Net Debt / Pro forma FY26 EBITDA |
| Expected completion | 1H2027 |
The Consideration Shares carry the following terms:
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Capped at 19% (and subject to shareholder approval to the extent required), with any remaining consideration paid in cash.
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Valued on the volume-weighted average price of IMG shares over the 10-trading-day period ending 5 business days before completion.
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Subject to a 6-month voluntary escrow following completion.
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A break fee of US$12 million payable to JCI if IMG fails to obtain shareholder approval or otherwise fails to pay the purchase price at completion.
IMG has entered binding commitment papers to refinance its current facilities with the 4-year A$448m Unitranche facility provided by Ares Capital Corporation. This facility, combined with cash on hand, is intended to provide financial flexibility to transition the ADT UK Residential business from JCI.
Black Crane Asia Pacific Opportunities Fund, which holds an approximate 29.3% interest in IMG and whose investment manager is ultimately controlled by IMG director Peter Kennan, has advised that it intends to vote in favour of the resolution to issue the Consideration Shares, subject to no superior proposal emerging.
Completion remains subject to customary conditions precedent, including regulatory approvals and IMG shareholder approval to issue the Consideration Shares for the purposes of ASX Listing Rule 7.1 to the extent required. For existing shareholders, the self-contained funding structure means no dilutive capital raise is proposed beyond the Consideration Shares.
Why recurring revenue drives the IMG investment case
Recurring monitoring revenue refers to the predictable, subscription-style monthly income earned from monitored alarm and security contracts. Customers pay an ongoing fee for their premises to be monitored, generating a steady stream of income rather than one-off sales.
This transaction directly strengthens that earnings quality. It adds $12.5m per month in recurring revenue across more than 160,000 customers, a 205% uplift in IMG’s monthly recurring monitoring revenue.
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Strategic rationale and the road ahead
The acquisition is consistent with IMG’s stated strategy of acquiring high-quality security businesses with strong customer relationships and established market positions. The company points to its familiarity with the ADT operating model following its 2023 acquisition of ADT’s Australia and New Zealand businesses as a source of integration confidence.
The Tyco NZ acquisition, completed in late May 2026, reinforced that familiarity further: both Tyco NZ and Red Wolf Security operated within the same JCI ecosystem as ADT, giving IMG direct insight into the operational and cultural characteristics of JCI-owned security assets ahead of this larger UK transaction.
ADT UK Residential will continue to operate as a standalone business post-completion. IMG has identified a platform for future organic growth, including the rollout of advanced monitoring and video security solutions.
Managing Director, Dennison Hambling
“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. This experience underpins 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.”
Key points on the road ahead include:
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Completion expected in 1H2027.
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An orderly and disciplined transition process, supported by the established operating model.
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A platform for organic growth through video and advanced monitoring solutions.
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An Acquisition Announcement Webinar with Managing Director Dennison Hambling, held on 2 July 2026 at 10:00am AEST.
Taken together, the transaction reflects a repeatable and disciplined approach to mergers and acquisitions, building toward a diversified, multi-market platform underpinned by recurring revenue.
Ready to Explore IMG’s Expansion Into the UK Security Market?
Intelligent Monitoring Group’s binding agreement to acquire ADT’s UK residential security business represents a potential 300% uplift in pro forma annualised EBITDA, underpinned by more than 160,000 customers and $12.5 million in recurring monthly revenue. The self-contained funding structure means no dilutive capital raise is required beyond the Consideration Shares issued to the vendor.
To learn more about the company’s growth strategy and the full details of this transformational acquisition, visit the Intelligent Monitoring Group investor centre for the latest announcements and corporate updates.