Global mining-tech company IMDEX has entered a binding agreement to acquire Norway-based Devico AS in a A$334 million ($230 million) deal that, it says, will reinforce its market-leading position in mining technology and deliver increased market penetration.
The proposed acquisition of Devico AS, a provider of advanced sensors and directional drilling technologies, is expected to be completed by late February.
IMDEX Chief Executive Officer, Paul House, said the proposed acquisition was a highly significant investment that extended IMDEX’s core business in both geographical reach and technology capability. It follows on from a recent heads of agreement to acquire a 40% interest in Krux Analytics, a developer of drilling analytics software focused on the collection and analysis of exploration and production drilling data in real time, for $6.42 million in cash.
The addition of Devico would strengthen IMDEX’s position as the leading provider of advanced rock knowledge sensors and establish the business as the number one directional drilling technology company globally, the company said, with Devico’s portfolio of rock knowledge sensors complementing IMDEX’s existing technology.
IMDEX said: “Through increased scale and market penetration, particularly in Europe and South America, IMDEX would further expand its presence on mine sites, opening further opportunities for its solutions to be delivered to established customers.
“Devico services mining and civil industries globally, has world-class facilities located in a key hub in the Scandinavian mining market, and strong research and development capabilities.”
Alongside this, it has a track record of commercialising innovative mining technologies and a commodity-agnostic product offering which complements IMDEX’s core business, it added.
House said IMDEX saw significant value in combining the complementary product portfolios, market-leading R&D capabilities and global presence.
“Devico’s flagship facility in Trondheim will become a key asset for IMDEX – providing us a new innovation and manufacturing hub for the European market,” he said. “Devico’s expertise, professionalism and their relentless customer focus matches our own and we are excited about what our teams can achieve together for the mining industry. We have commenced integration workstreams and are confident in a smooth transition.”
Devico has a workforce of 200 personnel across 15 locations around the world, with the existing management and technical team seen as a key asset for IMDEX.
Devico is expected to deliver 2022 revenue of about $61 million and EBITDA of $29 million and has demonstrated its ability to scale its business over the past three years with a revenue compound annual growth rate of 17% per year. About 46% of Devico’s revenue is generated from its sensors and 56% from its directional drilling technologies, according to IMDEX.