IMG Completes $37 Million Acquisition of Wormald NZ and Red Wolf, Boosting Earnings by 20.9%

Strategic Expansion into New Zealand Market

Intelligent Monitoring Group (ASX:IMB) has completed the acquisition of Wormald NZ and Red Wolf for approximately A$37 million as of 29 May 2026, marking a significant step in its trans-Tasman growth strategy. This deal substantially broadens IMG’s commercial scale in New Zealand, adding over 330 employees and expanding its branch network to 14 locations. The transaction enhances IMG’s presence in critical infrastructure sectors and commercial security markets, reinforcing its ambition to lead the Australasian security and fire services industry.

Robust Recurring Revenue and Market Positioning

Wormald NZ, a legacy fire protection business dating back to 1896, contributes NZ$70.9 million in revenue with a strong 75% recurring revenue base. Its diversified customer portfolio spans commercial, industrial, healthcare, education, and mission-critical infrastructure, supported by long-term contracts for inspection, maintenance, and compliance. Meanwhile, Red Wolf, established in Wellington since 2005, adds NZ$11.7 million revenue, also with 75% recurring income, specialising in electronic security for government and enterprise clients. Red Wolf’s certified expertise in high-security environments and integration with major global platforms like Gallagher and Bosch positions IMG to deepen its technical capabilities in the New Zealand market.

Financial Upside and Funding Structure

The acquisition is expected to be materially accretive, with IMG forecasting a proforma EPS of at least 0.0625 cents per share, representing a 20.9% uplift. This follows a December 2025 equity raise of A$20 million, which, combined with existing cash reserves and a $35 million acquisition facility, funded the transaction. IMG’s proforma EBITDA guidance for FY26 now stands between A$53 million and A$57 million, up from an underlying EBITDA guidance of A$43-47 million. The company’s net debt to EBITDA ratio remains within a comfortable 1.5-1.6x range, reflecting disciplined financial management and alignment with board targets.

Strategic Fit and Growth Prospects

This acquisition aligns tightly with IMG’s strategic goals to reinforce its higher-value market positioning and expand contracted customer relationships. By integrating Wormald’s full fire lifecycle services and Red Wolf’s advanced government-grade security technology, IMG is poised to unlock cross-selling opportunities and deepen service penetration. The combined platform now services over 200,000 monitored and serviced sites across Australia and New Zealand, supported by a specialist workforce of around 1,000 employees. IMG continues to invest in AI-powered monitoring and video analytics, aiming to shift towards deterrence and apprehension in security services.

IMG’s Evolving Market Presence and Outlook

Since its rebranding and operational overhaul starting in 2021, IMG has steadily expanded through acquisitions and organic growth, transforming into a defensive, high-quality recurring revenue platform. The addition of Wormald NZ and Red Wolf significantly enhances IMG’s footprint and technical expertise in New Zealand, complementing its existing Australian operations. With a market capitalisation around A$245 million and backing from major institutional investors such as Black Crane and Allan Gray, IMG is well-positioned to capitalise on regulatory-driven demand and compliance requirements in the security and fire protection sectors.