Orica announces Terra Insights acquisition
Published by Will Owen,
Editor
Global Mining Review,
Orica has entered into a binding sale and purchase agreement with Vance Street Capital LLC (via VSC RST Holdco, L.P.) to acquire 100% of Terra Insights for CAN$505 million on a cash free, debt free Enterprise Value basis.
Terra is a Canadian-based company that provides innovative sensors and data delivery technology for geotechnical, structural, and geospatial monitoring in mining and infrastructure.
The acquisition is expected to be completed in 1H24, subject to regulatory approvals and other customary closing conditions.
The acquisition will be entirely funded by existing cash and committed undrawn bank debt facilities, with no expected impact on Orica’s credit ratings. Post funding, Orica’s balance sheet remains strong with pro-forma gearing remaining below the low end of Orica’s stated range.
Sanjeev Gandhi, Orica Managing Director and CEO, said:
“I am delighted to announce the acquisition of Terra today, a business that Orica has had a long-standing commercial relationship with for almost 10 years.”
“Terra is highly complementary to Orica Digital Solutions and our GroundProbe business, adding additional products, and capability across the mining and civil infrastructure value chains. The acquisition allows Orica to offer a more complete geotechnical offering to customers as well as adding an established stream of recurring software revenue.
“This acquisition strongly aligns with our Digital Solutions strategy and growth in mining and infrastructure. We are excited about the medium to long term opportunities this will create for Orica.”
Mark Price, CEO of Terra, said:
“We are excited to partner with Orica for Terra Insight’s next chapter of growth. Given our strong working relationship with Orica for nearly a decade, this combination is a great next step to in the evolution of our end-to-end sensor and data delivery platform through working closely with Orica’s Digital Solutions and GroundProbe businesses. This is a level of collaboration that is global-minded and future-focused. Importantly, this transaction meaningfully enhances the solutions we can collectively provide to our valued customers, and expand geographically across the mining and civil infrastructure markets.”
Read the article online at: https://www.globalminingreview.com/finance-business/20122023/orica-announces-terra-insights-acquisition/
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