Very interesting acquisition of 2 businesses for roughly 16 MI0
ACQUISITION OVERVIEW AND STRATEGIC RATIONALE Acquisitions and equity raise strengthen balance sheet and provide an increased capacity to unlock growth in both Commercial and Residential work. IMG has a strong platform for cash flow generation and long-term growth ✓ Acquisitions significantly increase the technical workforce of ADT in the Commercial space, which will unlock further organic growth discussions that are underway ✓ Acquisitions add in more than 35 employees (largely technical skilled) who will help unlock capacity for continued growth in Commercial/Enterprise work ✓ Acquisitions expected to be highly accretive and will reduce gearing further, adding value to existing investors, and putting IMG firmly on path for a senior debt refinance during FY2025. ✓ Combined EBITDA for FY24 of $5.71 million representing an EV/EBITDA acquisition multiple of 2.8x ✓ Expected to increase annualized underlying FY24F EBITDA from $33.5 - $34.02 million up to proforma FY24F of $39.2 – 39.7 million ✓ Net debt to EBITDA leverage expected to reduce to less than 2x EBITDA ✓ The Acquisitions are conditional on formal approval from IMG’s financiers (as well as certain other customary conditions in IMG’s favour). Subject to satisfaction of conditions, completion targeted for pre-30 June 2024.
