Epiroc has agreed to acquire MineRP, a software company majority owned by Dundee Precious Metals that specialises in increasing productivity for mines through integrated planning, execution and analytics.
MineRP has offices in South Africa, Canada, Australia and Chile. The company supports large and medium-sized mines globally in strengthening and optimising their operational efficiency by providing a software platform solution that integrates all technical mining data and other information such as machine data and ERP systems. MineRP has about 200 employees and had revenues of about $16 million for the 12 months ending June 30, 2020.
Helena Hedblom, Epiroc’s President and CEO, said: “This acquisition fits well into Epiroc’s focus on supporting mining companies on their digitalisation journey. The combination of MineRP’s platform capabilities with Epiroc’s digital solutions, partners and global presence has the potential to transform the way that mines operate.
“MineRP is a high-quality software provider with significant experience of connecting mines from pit to port and, together, we will continue to make mining customers’ operations even more smart, safe and seamless.”
The business will become part of Epiroc’s Digital & Technology division.
While Epiroc did not disclose the acquisition price, in a separate press release Dundee Precious Metals said the consideration for its fully-diluted 70% equity interest in MineRP and the repayment of DPM shareholder loans included:
- Around $40 million in cash representing the estimated portion payable to DPM on closing of the transaction; and
- Potential additional payments in the form of an earn-out of up to $28.7 million representing the portion payable to DPM upon the achievement of certain MineRP revenue targets in 2021 and 2022.
The acquisition is expected to be completed, after regulatory approvals, in the first half of 2021.