Devico manufactures products for directional core drilling, core orientation, downhole navigation, drill rig alignment, and QA/QC data management
Devico to be acquired by Australian mining technology company Imdex. (Credit: IMDEX LIMITED)
Australia-based Imdex has agreed to acquire rival mining technology company Devico in a deal that values the latter at A$324m ($223m).
Based in Norway, Devico is a provider of directional core drilling services and borehole surveying solutions. The company manufactures products for directional core drilling, core orientation, downhole navigation, drill rig alignment, and quality assurance/quality control (QA/QC) data management.
Devico employs around 200 people and has a footprint across 15 countries.
Key management personnel of the company have signed agreements with IMDEX to reinvest a part of their proceeds from the proposed deal by subscribing to the Australian company’s shares.
Devico founder Victor Tokle said: “Our journey from our vision in 1988 to a ‘world leader in directional core drilling, borehole surveying and accompanying software’ will be accomplished by the Proposed Acquisition.
“As Devico becomes a part of IMDEX, this combination will certainly be the power-house within the industry. The product offering and the global presence is unique. We have recently launched several new products and have a strong technology pipeline which is complementary to IMDEX.”
Around 46% of Devico’s revenue comes from Sensor Technologies, while the remaining 56% is from directional drilling technologies, which are utilised directly by resource companies around the world.
According to Imdex, the deal is expected to be highly important for it and is in line with its growth strategy, which includes expanding its core business in resources-focussed exploration and development. The strategy also calls for expanding the company’s technologies within the mining production market, which is considerably larger and less prone to cyclical impact.
Imdex CEO Paul House said: “We see significant value in combining our complementary product portfolios, market-leading R&D capabilities and global presence.
“The addition of Devico 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.”
The deal is expected to close by the end of next month.