Weir has entered into a binding agreement to acquire Micromine, a software-focused company based in Perth, Australia, for a sterling equivalent enterprise value of A$1.31 billion ($814 million), around 18 months after AspenTech terminated its planned takeover of the company.
Micromine is a top-tier global software provider to the mining industry, with comprehensive solutions across the upstream mining value chain. It supports critical mining operations from exploration through mine design and planning, operational scheduling and mining operations in hard ore, soft ore and underground applications.
Its flagship products in the exploration space include Geobank and Origin, while in the mine planning space it can rely on solutions such as Alastri, Spry and Advance. For fleet management and mine control, the company has an established presence with Pitram, while the likes of Beyond and Nexus are used for evaluation & design, and data management, respectively.
Weir says the planned cash deal provides a significant opportunity to leverage Weir’s direct global distribution channels to accelerate growth, while creating a platform to integrate domain knowledge to optimise the end-to-end mining value chain.
It says Micromine has a record of delivering consistently high growth, with a revenue CAGR of circa-25%, recurring software-as-a-service (SaaS) subscription income that is around 90% of revenue, and sector-leading operating margins and cash generation that is an additive to Weir’s aftermarket-focused model.
Jon Stanton, CEO, Weir, said: “The acquisition of Micromine is a significant step in our strategy of investing in technology to accelerate smart, efficient and sustainable mining. The combined force of Micromine and Weir will create a sector-leading globally scaled platform to optimise performance across the mining process.
“In Micromine, we are adding an established, high-quality business and proven performer that is complementary to Weir’s aftermarket-focused business model and current digital solutions. This acquisition provides a compelling opportunity for strong value creation in the immediate and longer term.
“The Micromine team are experts in their field and share Weir’s innovative mindset and customer focus. We look forward to welcoming them to Weir and working with them to provide customers with unparalleled technology and insights to enhance their operations.”
Andrew Gray, Managing Partner of Potentia Capital, said: “We are thrilled that Micromine will be joining the Weir family of businesses which we think is the perfect home for the business. I feel the addition of Micromine’s solutions, in particular its suite of AI offerings, will allow Weir’s customers to rapidly capitalise on their digital futures.”
The acquisition will ultimately combine with Weir’s MOTION METRICS™ and NEXT intelligent solutions and accelerate its vision for a digital platform using data from across the mining value chain to optimise resource planning, mine design and operations, and processing activities, the company says. With this acquisition, Weir’s strategy is to become an end-to-end software segment leader in the mining industry with solutions for process optimisation and clear competitive differentiation in line with Weir’s existing business model.
The transaction is expected to complete in the June quarter of 2025, subject to clearance by the Foreign Investment Review Board of Australia (FIRB). Post completion, Weir intends to initially run Micromine independently, while reporting externally under the ESCO Division. In due course, it intends to integrate the business with MOTION METRICS and NEXT intelligent solutions, to create a combined digital optimisation platform.
This business will be led by Kristen Walsh, currently Managing Director of Minerals Division APAC region, who will join the Group Executive reporting to Jon Stanton. Andrew Birch, the current CEO of Micromine, will remain with Weir for up to 12 months supporting Walsh in an advisory capacity.