Fast-growing security and internet of things (IoT) solutions company Intelligent Monitoring Group (ASX: IMB) has announced its fourth acquisition for the calendar year to date, with plans to buy fellow Perth-based group Dataline Visual Link (DVL) for $7 million.

It is a move that follows the integrations of ACG, Everjazz and Adeva – now rebranded as Signature Security Group – since June for a total acquisition value of $https://www.businessnewsaustralia.com/18.4 million.

The latest acquisition comprises $5 million in cash and $2 million in deferred IMG shares, and will be undertaken by IMG subsidiary ADT Security Group.

The deal is expected to be immediately earnings per share (EPS) accretive given DVL had a proforma EBITDA of $https://www.businessnewsaustralia.com/1.9 million for FY24, and will expand the group’s operating footprint in Western Australia while strengthening its national commercial and enterprise platform.

IMB had cash reserves of $https://www.businessnewsaustralia.com/1https://www.businessnewsaustralia.com/1.3 million at the end of the September quarter, but is paying for the latest acquisition instead through a placement worth $20 million with new and existing investors.

The shares were issued at $0.48, representing a 4 per cent discount to the last trading price of $0.50 on 4 November. However, in a bid to facilitate greater free-float and liquidity in IMG, major shareholder the Black Crane Asia Pacific Opportunities Fund wound down https://www.businessnewsaustralia.com/1https://www.businessnewsaustralia.com/1 per cent of its holding by selling https://www.businessnewsaustralia.com/15.6 million shares.

Black Crane was founded by former investment banker Peter Kennan, Intelligent Monitoring Group’s chairman. Following the placement sale, Black Crane now owns 36.7 per cent, and this could be reduced further due to the marginal dilution of a $3 million share purchase plan (SPP) that kicks off mid-November.

Completion of the acquisition is still conditional on IMG receiving formal approval from its financiers. The group adds it has also commenced negotiations or is in ongoing discussions to “acquire several targeted operations across Australia and New Zealand”.

Managing director Dennison Hambling highlights the positive impact already from the 2023 acquisition of ADT Security from Tyco Australia for $45 million.

“This acquisition is a further important piece in helping IMG, through ADT, rebuild a complete network of security technicians across Australia and New Zealand to support our enterprise and commercial customers,” Hambling expansion.

“Having already lifted ADT’s commercial business from $2 million revenue in the year prior to IMG’s acquisition of ADT to a run rate of $https://www.businessnewsaustralia.com/12 million per annum by the end of June 2024, the addition of these quality businesses, customers, and people will further help unlock ADT’s commercial business as it seeks to return to its historical levels of $https://www.businessnewsaustralia.com/125 million annual revenue and beyond.

“Together with the successful acquisitions of ACG and AAG (Everjazz) in July, DVL will help unlock further customer work that is under discussion and help IMG continue to build what is a strong organic growth profile.”

The group reported 40https://www.businessnewsaustralia.com/1.8 per cent revenue growth in FY24 to reach $https://www.businessnewsaustralia.com/12https://www.businessnewsaustralia.com/1.8 million. Adjusted EBITDA stood at $32.5 million, up 8https://www.businessnewsaustralia.com/17.5 per cent, but IMG still reported a loss of around $3 million for the period.

IMG is forecasting underlying EBITDA of more than $38 million for FY25, although its shares have taken a hit over the past month due to a negative $7.9 million impact to its bottom line associated with 3G upgrades in Australia, and further 3G transition costs to follow in New Zealand.