SYDNEY, AUSTRALIA: Imdex Limited, mining-tech company, has entered into a binding agreement to acquire Devico AS for an implied enterprise value of A$324 million (approximately NOK 2.2 billion).

Devico is a leading global mining-tech company, established in 1988 and headquartered in Trondheim, Norway.

It has a workforce of 200 personnel and business entities across 15 countries. Devico is expected to deliver CY2022 revenue3 of A$61 million and CY2022 EBITDA3 of A$29 million.

The business has demonstrated its ability to scale over the last three years with a revenue3 CAGR of 17% per annum. The proposed acquisition represents a significant extension of IMDEX’s core business globally.

Devico’s portfolio of technologies complements IMDEX’s core business. Devico AS has achieved exceptional year-on-year growth and attractive margins, has a global operating footprint and a high-quality and diversified customer base.

Approximately 46% of Devico’s revenue is generated from Sensor Technologies and 56% from Directional Drilling Technologies, which are directly utilised by resource companies globally.

The proposed acquisition is expected to be highly significant for Imdex Limited and is consistent with the Company’s growth strategy, which includes growing its core business in resources-focussed exploration and development; and expanding its technologies within the mining production market, which is substantially larger and less subject to cyclical impact.

The combination of two leading sensor technology businesses will strengthen IMDEX’s market leading position with the integration of Devico’s #1 Directional Drilling Technologies business expected to unlock significant value for IMDEX shareholders.

Following completion of the Proposed Acquisition, Imdex Limited will be able to provide a more comprehensive offering to new and existing customers. Through increased scale and market penetration, particularly in Europe and South America, IMDEX will further increase its presence on mine sites globally.

Commenting on the Proposed Acquisition, IMDEX Chief Executive Officer, Paul House, said: “The Proposed Acquisition of Devico AS is consistent with IMDEX’s growth strategy and is a logical next-step. We see significant value in combining our complementary product portfolios, market-leading R&D capabilities and global presence.

The addition of Devico AS will strengthen our position as the leading provider of advanced rock knowledge sensors and will establish our business as the #1 Directional Drilling Technology company globally. Notably, Devico’s flagship facility in Trondheim will become a key asset for IMDEX – providing us a new innovation and manufacturing hub for the European market.

Devico’s expertise, professionalism and their relentless customer focus matches our own and we are excited about what our teams can achieve together for the mining industry. We have commenced integration workstreams and are confident in a smooth transition.”