Orica has moved to acquire all of the share capital in the entities that own Axis Mining Technology for $260 million in cash.
In addition, a deferred earn-out payment up to a maximum $90m is payable based on Axis’ cumulative EBITDA generated from October 1, 2022, to December 31, 2024, and contingent on certain key management remaining employed by Orica.
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.
The company’s 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 Sanjeev Gandhi said the company’s purpose was to sustainably mobilise the earth’s resources.
“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,” he said.
The acquisition and associated costs will be funded through the proceeds of a fully underwritten $650m institutional share placement.
Orica will also undertake a non-underwritten share purchase plan to eligible shareholders in Australia and New Zealand.