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.