Sometimes, the better business solution is to bring back the tried-and-tested instead of launching something new – a sales strategy security tech company Intelligent Monitoring Group (ASX: IMB) is applying it now.
IMG’s subsidiary, Mammoth Security, is set to acquire security systems company Adeva Home Solutions. IMG will pay Adeva founders Adam Woolston and Evan Comb $2.5 million, comprising $500k in cash and $2 million in shares in IMG subsidiary Mammoth Security, plus a potential earn-out.
Through this acquisition, IMG plans to bring back the historic “Signature Security” brand, which was once the largest end-to-end security provider for residential and small businesses in Australia. It will be operated by Mammoth Security and Adeva. The acquisition is expected to add $9 million in revenue and $800k in EBITDA to the IMG group in FY25, representing a purchase value of 2.8x pro forma FY24 Adeva EBITDA.
Managing Director Dennison Hambling commented, “Bringing the Signature Security brand back to life is an exciting moment for IMG and ADT (which acquired Signature for $171m in 2011 and 11.6x 2010 EBIT) and its staff, many of whom came from the Signature Security acquisition originally.
“Putting the existing Mammoth customers, with IMS’s 2x Patriot control rooms (which will enable more value-added solutions – such as video guarding and verification) in the management hands of Adam and Evan and their technicians is a very exciting development and is anticipated to create a further growth platform for IMG in the in-demand security services space.”
The Signature Security business was acquired by security company ADT in 2011. By June 2017, the Signature Security brand was retired and merged into ADT.
Adeva, currently a subcontractor to ADT and other providers, has 40 technicians across Australia. Adeva will be combined with IMG’s direct customer business, Mammoth, to form “Signature Security”.
Adeva is a national security provider with a highly focused team of technicians that offers a wide range of intelligent products and services, including access control barriers, CCTV recording, innovative alarm systems, business intercoms and integrated solutions.
IMG intends to create a significant second full-service security business and brand by combining Adeva and its 40 national technicians with IMS’s existing customer base, generating a platform for growth. Signature will immediately become the second largest bureau (or wholesale) customer of IMS (IMG’s monitoring business Patriot-based A1 graded security monitoring platform—operating 2x rooms in a backed-up fashion), behind Advanced Inland Group, which was recently sold back to local ownership after being owned by IMG for 16 months.
Operating various security platforms, Signature will be positioned to serve customers looking for a service different from what ADT offers, particularly wired, technical home, and SME systems. The revived brand will be led by Adam Woolston and Evan Comb and is expected to boost IMG’s revenue.
Alinda is a Business Reporter for The Sentiment
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1 Comment
Shraddha13
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Replyhttps://www.360iresearch.com/library/intelligence/electronic-security-systems