Mining tech group IMDEX has signed a A$324 million binding agreement to acquire its main competitor, Norway-based advanced sensor and drilling tech company Devico AS.
The transaction, which IMDEX said will help reinforce its market position as well as broaden its market penetration, especially in Europe and South America.
IMDEX CEO Paul House called the porposed deal a highly significant investment, and that it will extend the company’s core business in both geographical reach and technology capability.
“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,” he said. “Devico’s portfolio of rock knowledge sensors complements IMDEX’s existing technology.”
IMDEX will acquire 100% of the issued and outstanding shares in Devico, and Devico’s select minority interests in subsidiaries and joint ventures.
The acquisition, under which Devico’s management and technical team are expected to remain, is expected to close in late February.
According to Devico, about 46% of its revenue is generated from its sensors and 56% is from its directional drilling technologies.