Orica has entered into a binding agreement to acquire Axis Mining Technology, a leader in the design, development and manufacture of specialised geospatial tools and instruments for the mining industry, as it looks to create a full-service Orebody Intelligence business that positions the ASX-listed company to become what it says is the industry’s first integrated, end-to-end, mine to mill solutions provider.
The acquisition represents a highly strategic acquisition and a valuable addition to Orica’s Digital Solutions platform, it added, saying Axis’ geospatial technology accelerates its capabilities to support new mineral discoveries required for decarbonisation. Axis’ gold and copper exposure also accelerates Orica’s broader commodity mix objectives.
At last week’s Investor Day presentation, Orica’s Chief Technology Officer, Angus Melbourne, highlighted the geospatial area as a “a gap” in the company’s Orebody Intelligence porfolio.
The binding agreement has seen Orica offer A$260 million ($180 million) in cash to acquire 100% of the share capital in the entities that own Axis, in addition to a deferred earn-out payment up to a maximum A$90 million. These amounts are to be funded through the proceeds of a fully underwritten A$650 million institutional share placement.
As part of the deal, Axis’ existing management team will enter into new employment agreements with Orica as part of the integration process.
Orica Managing Director and CEO, Sanjeev Gandhi, said: “Orica’s purpose is to sustainably mobilise the earth’s resources and achieving this starts with a better understanding of the orebody at the start of the mining value chain. I believe that Axis’ differentiated geospatial tools and instruments, combined with our existing suite of digital solutions, will provide compelling orebody intelligence to customers and support the delivery of the industry’s first end-to-end solutions platform, from mine to mill.
“The integration of Axis’ technology and expertise will accelerate our ability to support our customer’s digital transformation efforts around the world, helping them to operate more efficiently, sustainably and safely.”
Axis is a growing business that designs, manufactures and distributes specialised navigation instrumentation, data and drilling solutions for the mining industry. Axis has a differentiated market position, offering a comprehensive suite of tools and instruments to meet customers’ geospatial requirements, according to Orica. Its products are manufactured and assembled at Axis’ UK and Australian facilities, and distributed to over 30 countries.
