Ongoing digitalization of mining sector continues to boom Metal Tech News – December 30, 2020
Epiroc Canada, a subsidiary of the Sweden-based Epiroc, has signed a definitive agreement to acquire the software company MineRP for increased mine productivity.
As part of the agreement, Canada's Dundee Precious Metals and other shareholders will sell 100% of MineRP to Epiroc Canada, to become part of the European mining equipment company's technology and digital division.
Dundee will receive nearly US$40 million from the sale, representing its stake in MineRP, with additional potential payments in the form of an earn-out of up to US$28.7 million, representing the portion payable to Dundee upon achieving certain MineRP revenue targets in 2021 and 2022.
"This acquisition fits well into Epiroc's focus on supporting mining companies on their digitalization journey," said Epiroc President and CEO Helena Hedblom. "The combination of MineRP's platform capabilities with Eprioc's digital solutions, partners and global presence has the potential to transform the way that mines operate."
Epiroc is a world-class productivity partner for the mining, infrastructure and natural resources industries. The company provides services and solutions for automation and interoperability, collaborating with customers in more than 150 countries.
"MineRP is a high-quality software provider with significant experience of connecting mines from pit to port, and together, we will continue to make mining customers' operations even more smart, safe and seamless," said Hedblom.
MineRP is a software company that was founded in 1997 and has since then developed a reputation of innovating solutions and enabling digital mine integration. With over two decades of experience, the company has streamlined and optimized its business solutions toward completely adapting the mining sector in this digital age through integrated planning, execution and analytics.
The company supports large and medium-sized mines globally in strengthening and optimizing their operational efficiency by providing a leading software platform solution that integrates all technical mining data and other information such as machine data and enterprise resource planning (ERP) systems.
"We acquired MineRP in 2017 as part of our ongoing strategy to drive innovation at DPM and to leverage a technology with the potential to transform the mining industry," said Dundee Precious Metals president and CEO Davie Rae. "Having substantially advanced our initiatives and supported MineRP in developing its software to position it for its next phase of growth, the time is right for DPM to divest our interest as we continue to focus on our core mining assets."
With Epiroc taking the baton from Dundee and integrating MineRP into their technology and digital division, the software company should continue to thrive. The surplus of data under Epiroc's belt, and the integrated platform designed by MineRP, its portfolio could potentially expand and become more streamlined, easily competing with leading artificial intelligence companies.
The acquisition is expected to be completed, after regulatory approvals, in the first half of 2021. The purchase price is not material relative to Epiroc's market capitalization.