Swedish engineering company Atlas Copco has entered into an deal to acquire industrial technology group Edwards for about $1.6bn, a move which is expected to stabilize its mining business.

Headquartered in UK, Edwards is a global supplier of vacuum and abatement services, and recorded revenues of £595m in 2012. It has more than 3,200 staff.

According to Atlas, the acquisition of Edwards will provide it with an opportunity to expand into a growing business which serves industries that are well-known to the company.

Atlas Copco chief executive officer Ronnie Leten said Edwards is a technology company with a well-developed structure and strong customer relationships in several industries.

"We recognize the strength Edwards has in its people and products as well as their excellence in technology and innovation. We are excited that this professional company will join our Group," Leten added.

The proposed acquisition, which will be completed by way of a merger, will be an all-cash transaction using Atlas’ existing own funds.

The transaction is conditional to customary closing provisions including Edwards shareholder approval and antitrust clearance, and is expected to close in Q1 2014.