Johns Lyng Group (JLG) continues to cement its place in the essential home services market with the acquisition of Smoke Alarms Australia (SAA) and Linkfire. 

The purchases will be bankrolled by a fully underwritten $65m institutional share placement and both are expected to settle in the first quarter of FY24. 

Founded in 2005, SSA is the second largest provider of smoke alarm, electrical and gas compliance, testing and maintenance services. It completes up to 284,000 jobs annually. 

Linkfire provides fire and essential safety services in Victoria with recent expansion to Newcastle. 

Founded in 1998, Linkfire is a market leader in its existing markets, servicing more than 8500 buildings per year with 80% of its customers strata managers and owners’ corporations. JLG sees potential for significant cross-sell opportunities to existing customers and cost synergies. 

An international provider of restoration services for the insurance industry, commercial businesses, governments and the retail sector, JLG Group CEO Scott Didier says the new businesses complement its current activities and growth strategy. 

“Most importantly, the teams at SAA and Linkfire are the right cultural fit and we look forward to working with them.” 

JLG says the acquisitions align with its strong track record of expansion through “highly complementary acquisitions with annuity style business models underpinned by defensive, non-discretionary products and services”. 

JLG says the new businesses provide a platform for further mergers and acquisitions and consolidation of a highly fragmented sector. Both businesses operate under a subscription model with recurring and predictable cash flow. It sees growth potential as governments mandate regular checks under tenancy regulations.