Imdex has wrapped up its A$6.5 million acquisition of 40% of Canada’s Krux Analytics and agreed on terms to buy the other 60% within three years.
The deal, announced in January this year, was subject to due diligence and board approvals.
ASX-listed Imdex said the “mechanism” for taking full ownership of Krux would depend on the “quality of [Krux’s] revenue”, particularly its software-as-a-service sales, but would nominally see the outstanding equity valued at circa-4.5-times revenue.
Imdex would pay cash or cash and shares for the stake.
The Australian company said it would collaborate with Krux over the next three years to accelerate its software development. An Imdex representative is joining Krux’s board as a director.
Calgary-based Krux develops advanced drilling analytics software. Its market-leading flagship product collects, aggregates and analyses exploration and production drilling activity data.
Imdex said Krux’s “unique software development expertise and proven product offering provide an opportunity to support the digitisation” of its drilling optimisation business, complementing the company’s existing fluids and equipment with sensors and data aggregation.
The union would “provide a pathway for Imdex Mobile customers to transition to a more advanced platform, including dashboarding capability … [and] accelerate the ability for Imdex Mobile and Krux customers to incorporate drill rig sensor streams”.
It would also improve Imdex’s drilling data origination and analysis capabilities.
“Specific examples include the auto-generation of drilling productivity metrics, digital sustainability monitoring and reporting, in-hole correlation of drilling parameters with geology data to inform improved drill productivity, and predictive analytics and simulation for more efficient drilling and maintenance programs,” the company said.
Krux Analytics CEO Jody Conrad said Imdex’s investment would help the company strengthen its position as a leader in real-time data collection for the mining industry.
“We remain committed to staying agnostic and providing the best solutions to our customers, regardless of what other hardware or software they use,” she said.
“With this investment, we are excited to take our platform to new heights and continue delivering value.”
Imdex has a current market value of about A$1.1 billion.