Mining and infrastructure solutions developer Orica Limited has officially announced the signing of a binding sale and purchase agreement with Vance Street Capital LLC to acquire Terra for CAD 505 million (AUD 559 million).
The acquisition, conducted on a cash-free, debt-free enterprise value basis, positions Orica to enhance its digital capabilities in geotechnical, structural, and geospatial monitoring within the mining and infrastructure sectors, the ASX-listed company said in a media release.
Terra, a prominent Canadian company, specialises in delivering innovative sensors and data delivery technology for geotechnical, structural, and geospatial monitoring.
The acquisition, subject to regulatory approvals and customary closing conditions, is expected to be finalised in the first half of CY2024.
Orica’s Managing Director and CEO Sanjeev Gandhi expressed enthusiasm about the strategic move, stating, “I am delighted to announce the acquisition of Terra today, a business that Orica has had a long-standing commercial relationship with for almost ten years.”
He emphasised that Terra is highly complementary to Orica’s existing digital solutions and GroundProbe business, providing additional products and capabilities across the mining and civil infrastructure value chains.
“This acquisition strongly aligns with our Digital Solutions strategy and growth in mining and infrastructure,” added Gandhi.
He also highlighted the long-term opportunities that the acquisition will create for Orica and its commitment to offering a more complete geotechnical offering to customers, including an established stream of recurring software revenue.
Mark Price, CEO of Terra, shared his excitement about the partnership, stating, “We are excited to partner with Orica for Terra Insight’s next chapter of growth.”
He continued, “Given our strong working relationship with Orica for nearly a decade, this combination is a great next step in the evolution of our end-to-end sensor and data delivery platform.”
The collaboration aims to leverage Orica’s Digital Solutions and GroundProbe businesses, fostering global-minded and future-focused initiatives.
Mark Price emphasised the significance of this transaction in enhancing the solutions collectively provided to customers and expanding geographically across the mining and civil infrastructure markets.
