Sandvik Acquires Deswik, Leader in Mine Planning Software, and Launches New Digital Mining Technologies Division

SANDVIKEN, Sweden, December 2, 2021 /PRNewswire/ — Sandvik has signed an agreement to acquire Australian company Deswik, the leading and fastest growing provider of mine planning software. Deswik will be part of a new Digital Mining Technologies division within the Sandvik Mining and Rock Solutions business area.

By acquiring Deswik, Sandvik acquires a leading provider of integrated software platforms that support digitization throughout the mine planning stages, with over 10,000 current licenses. Deswik has a high-quality customer base, and its strong profitable growth and low churn will further strengthen Sandvik’s presence in software and digitization, and help accelerate growth.

“I am very pleased that we continue to implement our transition to growth strategy and that we continue to expand our offer with digital solutions that increase productivity in the customer’s value chain. Mine planning and operations management is a key growth opportunity, and this complementary acquisition and our new Digital Mining Technologies division will strengthen our digital offering and enable us to offer our customers a more comprehensive suite of technologies,” said Stefan Widing, Chairman and CEO of Sandvik.

Deswik will fill a value chain gap in the Sandvik Mining and Rock Solutions offering, increasing upstream mining coverage and providing opportunities for end-to-end optimization solutions, including, for example, integration electrification at the planning stage of the mine. Its core software suite includes computer-aided 3D mine design, planning, operations planning, mine data management, and geological mapping. Deswik also offers a range of consulting services including mine planning, scoping, software implementation and training support.

“Deswik’s unparalleled software suite, combined with Sandvik’s digital and automation offering, creates an undisputed global leader in digital solutions for the mining industry. The combination of Deswik’s skills in mine planning and scheduling with our equipment and automation expertise will open up new optimization opportunities for our customers in the mining value chain,” says Henrik Ager, President of Sandvik Mining and Rock Solutions.

Deswik will be one of three cornerstones of the new Digital Mining Technologies division, created to accelerate the execution of Sandvik Mining and Rock Solutions’ strategic priority of leading the industrial development of underground sustainability and productivity solutions in the areas from electrification, automation, digitization and end-to-end optimization. The new division also includes Sandvik Mining and Rock Solutions automation solutions and Newtrax telemetry and collision avoidance solutions.

The private company Deswik, created in 2008 and headquartered in Brisbane, has approximately 300 employees and operates 14 offices in 10 countries. The company has demonstrated strong and profitable growth over the past decade in the large and growing mining software market.

Deswik revenue by October 2021, on a rolling twelve-month basis, totaled AUD 79 million, of which the recurring revenue share was around 45%, and with an EBITA margin of around 30%. The impact on earnings per share (excluding non-cash amortization effects of business combinations) will be accretive. The parties have agreed not to disclose the purchase price.

The transaction is expected to close in the first quarter of 2022, subject to relevant regulatory approvals.

Sandvik estimates that transaction costs of approximately 50 million Swedish crowns in total will impact Sandvik Mining and Rock Solutions in the fourth quarter.

Conference call

There will be a conference call related to the contemplated acquisition on December 2, 2021 at 1:30-2:30 p.m. CET for analysts, investors and the financial media. The conference call will also be available live in “listen-only” mode on Sandvik’s website. Please see home.sandvik for login details and presentation material available at approx. 13:00 CET.

Dial-in numbers for the conference call:

SE: +46 8 505 583 69 (direct)

UK: +44 333 300 0804 PIN: 87268762#

stockholm, December 2, 2021

Sandvik AB

For more information, contact Louise Tjeder, Vice President Investor Relations, tel. : +46 70 782 6374 or Johannes Hellström, Press and Media Relations Manager, tel. : +46 70 721 1008.

This information was brought to you by Cision http://news.cision.com

https://news.cision.com/sandvik/r/sandvik-to-acquire-leading-mine-planning-software-company-deswik-and-launch-new-digital-mining-techn,c3464756

The following files are available for download:

SOURCESandvik