Orica to acquire Axis Mining Technology for up to A$350 million

SYDNEY, AUSTRALIA: Orica Limited (ASX: ORI) has entered into a binding agreement to acquire 100% of the share capital in the entities that own Axis Mining Technology for A$260 million in cash.

In addition, a deferred earn-out payment up to a maximum A$90 million (the Earn-Out) is payable based on Axis’ cumulative EBITDA generated from 1 October 2022 to 31 December 2024, and contingent on certain key management remaining employed by Orica during the Earn-Out period.

Any amount payable under the Earn-Out will be paid after the expiration of the Earn-Out period, being 31 December 2024. Completion of the Acquisition is expected to occur by October, subject to satisfaction of conditions precedent.

Axis is a leader in the design, development and manufacture of specialised geospatial tools and instruments for the mining industry. Axis represents a highly strategic acquisition and a valuable addition to Orica’s Digital Solutions platform, positioning it to become the industry’s first integrated, end-to-end, mine to mill solutions provider.

Axis’ existing management team will enter into new employment agreements with Orica and are committed to ensuring a successful integration of the business.

Orica Managing Director and CEO Sanjeev Gandhi said: “We are extremely pleased to welcome Axis into Orica. This strategic acquisition further strengthens our existing Digital Solutions vertical and expands our Orebody Intelligence portfolio upstream.

“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. I believe that 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.

“The integration of Axis’ technology and expertise will accelerate our ability to support our customer’s digital transformation efforts around the world, helping them to operate more efficiently, sustainably and safely.

“In addition to facilitating the Acquisition, the Equity Raising will allow Orica to fund incremental trade working capital requirements arising as a result of global supply chain dislocations, and also provide additional balance sheet capacity,” Mr Gandhi said.

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