IMG’s $45M Acquisition to Boost FY26 Revenue to NZD 318M
Intelligent Monitoring Group has agreed to acquire Tyco NZ and Red Wolf for NZD 45 million, significantly boosting its New Zealand presence and FY26 earnings outlook.
- Acquisition of Tyco NZ and Red Wolf for NZD 45 million
- Expected FY26 pro forma revenue of NZD 89.5 million and EBITDA of NZD 10.9 million
- Deal funded through existing NAB debt facilities and cash flow
- Pro forma consolidated revenue to reach NZD 318 million post-acquisition
- EPS expected to increase by 24.6% to 28.3% following the acquisition
Strategic Expansion into New Zealand
Intelligent Monitoring Group Limited (IMG) has announced a binding agreement to acquire BlueSky Holdco Limited, which operates Tyco NZ and Red Wolf, for NZD 45 million in cash. This move marks a significant step in IMG's strategy to deepen its commercial footprint in New Zealand, complementing its existing ADT NZ operations and expanding its service offerings in fire protection and high-level security.
Tyco NZ, a well-established fire protection service provider with 12 branches and over 300 employees, brings a strong recurring revenue base. Red Wolf, known for its presence in Wellington’s government and commercial sectors, aligns well with IMG’s growth ambitions, particularly in regions where ADT NZ has less coverage.
Financial Impact and Funding
The acquisition is expected to be materially accretive, with pro forma FY26 revenue estimated at NZD 89.5 million (approximately AUD 78.1 million) and EBITDA of NZD 10.9 million (AUD 10 million), before any cost improvements or restructuring charges. Post-acquisition, IMG’s consolidated annualised revenue is projected to reach NZD 318 million, with EBITDA between NZD 53 million and 57 million.
Importantly, the deal is anticipated to boost earnings per share by 24.6% to 28.3%, a notable uplift from previous guidance. IMG plans to fund the acquisition entirely through its existing debt facilities with National Australia Bank, drawing on a $35 million acquisition facility supplemented by cash flow, thereby avoiding equity dilution.
Strategic Rationale and Integration
Managing Director Dennison Hambling highlighted the strategic value of acquiring businesses with a stable recurring revenue base and strong brand recognition. The fact that Tyco NZ and Red Wolf were part of the Johnson Controls International group, like ADT, suggests a smooth transition with minimal operational disruption. IMG sees this acquisition as a catalyst to accelerate the rollout of its security products across New Zealand’s commercial sector.
The transaction is expected to complete by late February 2026, subject to customary adjustments. IMG’s management remains confident that this acquisition will solidify the company’s position as a leading industrial player in Australasia with robust growth prospects and a strengthened balance sheet.
Looking Ahead
As IMG integrates these new assets, investors will be watching closely for how the company leverages its expanded footprint to drive further growth and operational efficiencies. The acquisition underscores IMG’s commitment to strategic expansion through targeted, accretive deals funded prudently via debt and cash flow.
Bottom Line?
IMG’s New Zealand acquisition sets the stage for accelerated growth and enhanced earnings, but integration execution will be key.
Questions in the middle?
- How will IMG manage integration risks between Tyco NZ, Red Wolf, and existing ADT operations?
- What cost synergies or operational improvements can IMG realistically achieve post-acquisition?
- Will IMG pursue further acquisitions in Australasia to build on this momentum?
