Orica says it has wrapped up its A$260 million acquisition of privately-owned Axis Mining Technology, announced in August. “The integration of Axis’ technology and expertise will accelerate our ability to support our customer’s digital transformation efforts around the world,” Orica CEO Sanjeev Gandhi said.
The base purchase price is reportedly 11.8-times Axis’ FY22 earnings before interest, tax, depreciation and amortisation (EBITDA).
Orica could pay up to $350m for Axis if earn-out conditions met.
It raised $725m of new equity funding, criticised in some quarters as an “over-raise” that diluted the earnings impact of the deal.
Gandhi said the strategic acquisition “further strengthens our existing digital solutions platform and expands our orebody intelligence business”.
“Orica’s purpose is to sustainably mobilise the earth’s resources and achieving this starts with a better understanding of the orebody at the start of the mining value chain,” he said.
“Axis’ differentiated geospatial tools and instruments, combined with our existing suite of digital solutions will provide compelling orebody intelligence to customers and support the delivery of the industry’s first end-to-end solutions platform, from mine to mill.”