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LONDON - The Weir Group PLC (OTC:WEGRY), a global engineering firm, has announced its acquisition of Mining Software (ETR:SOWGn) Holdings Pty Ltd, known as Micromine, for £657 million (A$1,310 million). Micromine, headquartered in Perth, Australia, is a leading provider of software solutions for the mining industry, offering services from exploration to mine operations.
The acquisition, expected to close in Q2 2025, aims to create a comprehensive digital platform to enhance productivity and sustainability in mining. Micromine’s software suite is expected to complement Weir’s existing digital offerings and aftermarket-focused business model.
Micromine has demonstrated strong performance, with a revenue CAGR of approximately 25% over recent years and a significant portion of its income derived from recurring SaaS subscriptions. Weir’s CEO, Jon Stanton, expressed that the merger will establish Weir as a leader in mining software, optimizing performance across the mining process.
The deal, paid in cash, will be funded through Weir’s existing cash resources and new debt facilities. Weir reported a net debt of £535 million as of December 31, 2024, with a net debt to EBITDA ratio of 0.7x. Post-acquisition, the net debt to EBITDA ratio is expected to be below 2.0x at December 2025 and less than 1.5x by the end of 2026.
The transaction is subject to clearance by the Foreign Investment Review Board of Australia (FIRB). After completion, Micromine will initially operate independently within Weir’s ESCO Division. Kristen Walsh, currently Managing Director of Weir’s Minerals Division APAC region, will lead the integrated business, while Andrew Birch, CEO of Micromine, will stay on in an advisory role for up to 12 months.
Weir anticipates the acquisition to be immediately accretive to its earnings per share in the first full year of ownership and expects the return on invested capital to exceed the weighted average cost of capital by 2028.
This strategic move is in line with Weir’s long-term strategy to invest in technology that advances smart, efficient, and sustainable mining solutions. The information is based on a press release statement.
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