Highlights

  • IMDEX has received buy ratings from both Canaccord Genuity and Macquarie Research, accompanied by target prices of AUD 3.98 and AUD 3.80 respectively.
  • Recently, the company announced agreements to acquire Advanced Logic Technology (ALT) and Mount Sopris Instruments (MSI).

IMDEX Ltd (ASX:IMD) has attracted renewed attention from the investment community, following fresh buy ratings from Canaccord Genuity and Macquarie Research. Canaccord Genuity has set a target price of AUD 3.98 for the stock, while Macquarie Research has issued its own buy rating with a target of AUD 3.80.

These ratings have been delivered at a pivotal time for IMDEX, as the company advances a major expansion of its technology portfolio through the acquisition of ALT and its subsidiary Mount Sopris Instruments.

IMDEX Expands Technology Platform with ALT and MSI Acquisition

On 1 December 2025, IMDEX announced it had entered into binding agreements to acquire 100% of ALT and MSI for an upfront consideration of €55.8 million, equivalent to approximately AUD 98.9 million. The transaction marks a substantial expansion of IMDEX’s subsurface intelligence ecosystem, enhancing both its hardware and digital software offerings.

ALT, headquartered in Luxembourg, has long been recognised as a global leader in high-performance downhole imaging instruments and geoscience data processing software. Its flagship WellCAD platform is widely regarded as the industry standard among geoscientists and drilling professionals worldwide. MSI, based in Denver, brings a heritage of innovation in slimline geophysical logging systems and rugged instrumentation designed for subsurface investigations.

These complementary businesses broaden IMDEX’s sensor capabilities and strengthen its digital ecosystems through established global networks and advanced, field-proven technologies. Their integration is expected to further extend IMDEX’s suite of earth knowledge solutions across mining, geotechnical, environmental, groundwater and energy markets.

Transaction Structure and Expected Contribution

The total initial consideration of €55.8 million forms the foundation of a broader acquisition structure that also includes two performance-linked deferred components. These provisions relate to specific technology deployment milestones and a revenue-share model tied to incremental hardware and software revenue. Deferred payments are capped at €20 million, or approximately AUD 35.4 million.

Funding for the acquisition will be sourced from IMDEX’s cash reserves and existing debt facilities. Post-completion, IMDEX expects a pro forma Net Debt to FY25 Normalised EBITDA ratio of 1.1x, maintaining a disciplined financial position.

Indicative financial impacts for FY26 include an estimated AUD 10 million in additional revenue and approximately AUD 2 million in normalised EBITDA. The acquisition will also see the recognition of around AUD 60 million in goodwill and approximately AUD 30 million in acquired intellectual property assets.