Tag Archives: Potentia Capital

AspenTech in pole position to help digitise mining sector with planned takeover of Micromine

28th July 2022Automation, IoT, Mining mergers and acquisitions, Mining softwareAndrew Birch, Antonio Pietri, AspenTech, Micromine, mining m and a, mining software, Potentia CapitalDaniel Gleeson

Aspen Technology is looking to expand its industrial software remit with the acquisition of Micromine, a global leader in design and operational management solutions for the mining industry, from private equity firm Potentia Capital and other sellers for A$900 million in cash ($623 million)

The two have entered into a definitive agreement that AspenTech says complements its existing asset optimisation solutions and positions the company in a leadership role to deliver the “Digital Mine of the Future”, in support of excellence in operations with a focus on safety, sustainability, reliability and efficiency.

In addition, AspenTech says it is now uniquely positioned to help mining customers address the dual challenge of meeting the demands of a growing population with an increasing standard of living, while reaching sustainability goals.

“AspenTech’s innovation and unique expertise in digitally transforming the chemicals and oil and gas industries will be critical to the mining industry as it embarks on rapid digitalisation,” it says.

Micromine participates in the smart mining market, which in 2022 amounts to approximately $11.5 billion, according to AspenTech. Based on Micromine’s technology, the relevant global segments of the total smart mining market are $5.3 billion and cover data management and analytics, smart asset management and other solutions, AspenTech says.

“With a 35-year track record of success and 280 employees across 22 global offices, Micromine provides mission-critical solutions for over 800 blue-chip customers across all mining operations and commodities with a focus on various metals essential for the energy transition such as lithium, cobalt and nickel, base metals such as copper and iron ore, and precious metals such as gold,” the company added.

Antonio Pietri, President and CEO, AspenTech, said: “Digitalisation is critical for the metals and mining industry to become sustainably sound and operationally excellent for generations to come. Micromine’s comprehensive solutions span the breadth of the mining cycle from geological exploration and data management to resource estimation, mine design, planning, scheduling and production control.

“As we indicated when we announced the transaction with Emerson, AspenTech has gained additional flexibility to strategically deploy capital for growth. Combining AspenTech’s product portfolio and worldwide reach with Micromine’s mission-critical technology and leadership in the mining industry will equip customers with a comprehensive offering and the end-to-end ability to drive efficiencies across the entire mining value chain, while helping them meet the dual challenge.”

Back in October 2021, Emerson and AspenTech announced that the companies had entered into a definitive agreement to contribute Emerson’s industrial software businesses – OSI Inc and its Geological Simulation Software business – to AspenTech to create a diversified, high-performance industrial software leader with greater scale, capabilities and technologies being referred to as “new AspenTech”.

Andrew Birch, CEO, Micromine, said: “The majority of organisations in the mining industry are in a nascent stage of digitalisation. Accelerating their digital initiatives through a comprehensive suite of software applications and the expertise from AspenTech is a unique opportunity for our customers. Our vision has always been to create an ecosystem that connects experts across the exploration and mining value chain, using both new and existing technologies to deliver better outcomes for our customers.

“Micromine solutions complement AspenTech solutions perfectly with resultant capabilities of the whole combined company that are greater than the sum of the parts. Joining forces with AspenTech further reinforces this vision and will be the key to delivering the next generation of efficiencies in the mining sector.”

Micromine is expected to be accretive to AspenTech on a free cash flow basis within the first 12 months of the transaction closing, which is expected to close in the June quarter of 2023.

MICROMINE deepens mine scheduling expertise with Precision Mining addition

8th June 2021Mining mergers and acquisitions, Mining services, Mining softwareAndrew Birch, Craig Morgan, Glen Barnes, Micromine, mining software, Potentia Capital, precision mining, Spry, Zim ChanDaniel Gleeson

MICROMINE says it has taken its first step on the acquisition trail, signing a deal to purchase Queensland, Australia-based technology company Precision Mining.

The arrangement will give MICROMINE full ownership of Precision Mining, which is best known for its flagship mine scheduling software, Spry.

The acquisition is the first in almost two decades for MICROMINE, which celebrates its 35th anniversary this year.

Spry expands and deepens the mine scheduling segment in the company’s software suite. Spry provides a dig scheduling, dump scheduling and mine haulage software environment that gives complete results in a fraction of the time, according to Precision Mining.

MICROMINE’s current offering covers the entire mining cycle from exploration to production control, with its products currently used at 2,000 sites in 90 countries.

MICROMINE CEO, Andrew Birch, who took the reins at MICROMINE in 2019 after private equity firm Potentia Capital acquired a majority stake, said Spry would continue to operate as a standalone brand but would also be closely integrated with the MICROMINE suite.

“Precision Mining really stood out, not just for the quality of its software but also for the team’s experience and reputation as consultants in mine scheduling and haulage,” Birch said. “We looked worldwide for a company that was best in class and had the potential to scale globally. Finding an Australian company like Precision that is building innovative technology solutions suitable for the global mining market made the acquisition really attractive.”

Birch said MICROMINE’s focus for the past two years has been on accelerating organic growth and ensuring its product, distribution and customer service are “on point” and the company’s product roadmaps and vision are pushing into the next generation of both technology and mining.

“We are now expanding our reach and depth of expertise in a market we know well,” he said. “This is a very synergistic addition to our business and an important part of our growth strategy.”

The Precision Mining team, led by founders Glen Barnes, Craig Morgan and Zim Chan, will continue working in the business, bringing specialist scheduling and mine production expertise to the MICROMINE stable, according to MICROMINE.

Barnes said: “Joining MICROMINE will give us the experience, resources and global distribution network that are critical and together we will grow the business. The company has been growing quickly since 2007, and we reached the point where we need the expertise and support of a global business like MICROMINE to take it to the next level.”

Micromine looks to next phase of mining software growth with private equity deal

19th December 2018Automation, Communications in mining, IoT, Mineral exploration, Mineral processing, Mineral project development, Mining mergers and acquisitions, Mining services, Mining softwareAlan Broome, Andrew Gray, Claire Tuder, John McGagh, Michael McNamara, Micromine, mining software, Mitch Hooke, Potentia Capital, private equityDaniel Gleeson

Australasia’s leading technology-focused private equity firm, Potentia Capital, has taken a large stake in Micromine, as the software solution provider looks to move into a new growth phase.

As part of the deal, Alan Broome AM and Claire Tuder will remain on the board, with Tuder also continuing as Chief Executive Officer. Andrew Gray and Michael McNamara from Potentia Capital will also join the board, while the Advisory Board of John McGagh and Mitch Hooke AM will remain in place.

Even after the deal, the founding Tuder family will maintain significant ownership of the company, Micromine said.

Claire Tuder said: “Micromine is entering a new growth phase so we were seeking a partner to assist us reach our goals whilst respecting our values. Potentia has a strong track-record helping companies like Micromine and I liked their partnership approach.”

Micromine was founded 32 years ago by Graeme Tuder. It provides geological exploration, data management, resources estimation, 3D mine design, planning and production control solutions to the global resources industry from junior explorers to Tier One miners including Newmont, Newcrest, OZ Minerals, MMG and Rio Tinto.

“The company remains at the forefront of innovation with deep machine learning, mixed reality and automation projects underway,” Micromine says.

Potential Capital is a Sydney-headquartered private equity investment firm focused exclusively on technology, tech-enabled services and software businesses. The team is one of the most experienced in the Australian private equity market, Micromine says, having collectively deployed over A$2 billion ($1.44 billion) of capital across more than 10 investments in the technology sector globally.

Andrew Gray, Managing Director at Potentia Capital, said: “I look forward to working with the Micromine team to achieve its vision and to further demonstrate Potentia’s commitment to supporting innovative Australian technology businesses.”

Michael McNamara, Investment Director at Potentia Capital, said through the company’s due diligence, “we have been impressed by Micromine’s track record of innovation, world-class mining software and loyal customer base.”