IMDEX’s Bold Move: Can ALT and MSI Acquisition Deliver on EPS Accretion Promise?

Strategic Acquisition Strengthens IMDEX’s Market Position

IMDEX has taken a significant step to reinforce its leadership in digital earth knowledge and subsurface intelligence by acquiring Advanced Logic Technology (ALT) and its subsidiary Mount Sopris Instruments (MSI). The deal, valued at an upfront €55.8 million (approximately A$98.9 million) plus performance-linked deferred payments of up to €20 million (A$35.4 million), is set to expand IMDEX’s product suite and geographic reach, particularly across Europe and North America.

ALT, based in Luxembourg, is a global leader in high-performance downhole rock property sensors and the developer of WellCAD, the industry-standard software for borehole data processing and visualization. MSI, headquartered in Denver, USA, complements ALT’s offerings with advanced downhole sensors, deployment, and telemetry systems. Together, they serve diverse sectors including mining, infrastructure, civil engineering, environmental, groundwater, and energy markets.

Financial Impact and Growth Prospects

The acquisition is expected to contribute approximately A$10 million in incremental revenue and around A$2 million in normalized EBITDA for IMDEX in the 2026 fiscal year. Importantly, it is forecasted to be earnings per share (EPS) accretive in the first full fiscal year of ownership, even before factoring in potential cost and revenue synergies. The transaction will be funded through IMDEX’s cash reserves and existing debt facilities, resulting in a pro forma net debt to FY25 normalized EBITDA ratio of 1.1 times, reflecting a solid balance sheet position post-acquisition.

Key management from ALT and MSI will remain with IMDEX, ensuring continuity and leveraging their expertise to integrate and grow the combined operations. The acquisition also brings approximately A$30 million in intellectual property assets, with an expected increase in amortization and capital expenditure, alongside incremental interest costs related to the deal financing.

Complementary Technologies and Market Expansion

The combined ALT and MSI portfolio enhances IMDEX’s existing offerings with complementary optical and acoustic televiewer technologies, slim-hole imaging instrumentation, and integrated software solutions. This strengthens IMDEX’s ability to deliver richer subsurface data and insights, meeting the rising demand for detailed rock characterization in increasingly complex mining environments.

Beyond mining, the acquisition opens doors to adjacent markets such as infrastructure, civil engineering, environmental monitoring, groundwater management, and energy sectors. ALT’s well-established presence in Europe and North America, coupled with MSI’s strong distribution network, provides IMDEX with a ‘plug and play’ opportunity to expand its global footprint and diversify end-market exposure.

Digital Integration and Future Innovation

Integrating WellCAD software with IMDEX’s digital platforms like EarthNET and Datarock promises to accelerate subsurface insights and streamline geological data interpretation. The move towards converting WellCAD from a perpetual license model to software-as-a-service (SaaS) aligns with broader industry trends and offers recurring digital revenue potential.

IMDEX also anticipates leveraging combined engineering and R&D capabilities to fast-track next-generation downhole geophysics systems, enhancing operational outcomes and simplifying deployment. The acquisition is positioned as a transformative milestone in IMDEX’s earth knowledge strategy, reinforcing its commitment to innovation and market leadership.