Intelligent Monitoring Group has agreed to buy ADT's UK residential security business from Johnson Controls International in a deal worth 180 million pounds, or about 347 million US dollars, marking the company's entry into the UK market.
The purchase price is split between 155 million pounds in cash and 25 million pounds in shares, with the share component capped at 19 percent of IMG's shares on issue. The deal values the business at 4.2 times its forecast earnings before interest, tax, depreciation and amortisation for the 2026 financial year.
A large, high margin customer base
ADT UK Residential serves more than 160,000 residential security customers and generated 87 million pounds in revenue in the year to July 2025, with a 49 percent EBITDA margin and 93 percent of that revenue classified as recurring. Managing director Dennison Hambling said the acquisition "represents a compelling opportunity for IMG to add a highly established and recognised residential security platform."
Debt funded expansion
IMG has lined up a four year unitranche debt facility worth 448 million US dollars from Ares Capital Corporation to help fund the purchase, carrying an interest rate of 6 percent over the base rate, or roughly 10.2 percent per annum.
Management expects the deal to roughly triple the company's earnings, with annualised EBITDA projected to climb 300 percent to 130 million dollars once the business is folded in. The acquisition gives IMG an established UK brand and existing customer relationships to build on, along with a platform for further organic growth in monitoring and video security. The deal is expected to complete in the first half of 2027, subject to shareholder and regulatory approvals.
