Catalysis of the reaction: 1-deoxy-D-xylulose 5-phosphate + 2-iminoacetate + -C-terminal Gly-NH-CH2-C(O)SH = 2-ethyl phosphate + -C-terminal Gly-Gly + 2 H+ + 2 H2O.
1-deoxy-D-xylulose 5-phosphate:thiol sulfurtransferase activity