ASX-listed Imdex is acquiring mining software from Californian business DataCloud for $20 million in cash and shares.
Imdex announced the acquisition today, saying it will significantly enhance the Perth company’s data visualisation and analysis capabilities, as well as build on its real-time orebody knowledge technology.
DataCloud’s MinePortal is cloud-connected orebody software which interprets and models geological data to enable real-time 3D visualisation.
Imdex plans to integrate MinePortal with its IMDEXHUB-IQ technology.
The company said the acquisition would also accelerate the development of its geosensing tool, IMDEX BLASTDOG.
Chief executive Paul House said the deal was in line with Imdex‘s strategy to move into the production end of the mining value chain.
“The partnership will accelerate our product development roadmap and will benefit Imdex, our clients and the global minerals industry,” he said.
“Our integrated rock knowledge technology will allow visualisation of rock knowledge data in 3D, supporting enhanced decision making in real time.”
Mr House said MinePortal’s existing presence within mining production was readily scalable.
“It increases our SaaS [software as a service] offering and will generate additional quality revenue,” he said.
As part of the deal, Imdex will pay $8 million in cash to DataCloud and issue a pre-agreed number of shares between 2022 and 2023, as well as a third tranche of shares in 2024 if revenue targets are met.
The combined value of the shares, based on Imdex’s current share price, is about $12 million.
Mr House said the deal did not place any pressure on Imdex’s balance sheet, which stood at $47.4 million at June 30.
The deal is subject to a number of conditions, including the final approval from DataCloud shareholders, expected at the end of the month.
If approved, key DataCloud personnel will join the Imdex team.
Imdex was trading 2.2 per cent higher at 3:18pm AEST, to $2.29.
Read more about Imdex in Business News’ recent wrap-up of mining technology companies.
