Sandvik Acquires Deswik, Leading Mine Planning Software Company, and Launches New Digital Mining Technologies Division

Sandvik has signed an agreement to acquire the Australian company Deswik, the fastest growing leading supplier 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 is becoming a leading provider of integrated software platforms that support digitization throughout the mine planning stages, with more than 10,000 current licenses. Deswik has a high quality customer base, and its strong profitable growth and low churn rate will further strengthen Sandvik’s presence in software and digitization, and help accelerate growth.

“I am very happy that we continue to implement our strategy of transitioning to growth and continue to expand our offering with digital solutions that increase productivity in the customer’s value chain. The planning and management of mining operations is a key growth opportunity, and this complementary acquisition and our new Digital Mining Technologies division will strengthen our digital offering and allow us to provide our customers with a more complete suite of technologies, ”said Stefan Widing, President and CEO of Sandvik.

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

“Deswik An unrivaled software suite combined with Sandvik’s digital and automation offering creates an undisputed global leader in digital solutions for the mining industry. Combining Deswik our skills in mine planning and planning with our equipment and our expertise in automation will open up new opportunities to optimize the mining value chain of our clients ”, states Henrik ager, president of Sandvik Mining and Rock Solutions.

Deswik will be one of the three cornerstones of the new Digital Mining Technologies division, established 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 of end-to-end electrification, automation, digitization and optimization. The new division also includes Sandvik Mining and Rock Solutions automation solutions and Newtrax telemetry and collision avoidance solutions.

Private property Deswik, created in 2008 and based 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 income by October 2021, year over year, totaled AUD 79 million, of which recurring revenue share was approximately 45 percent, and with an EBITA margin of approximately 30 percent. 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 kronor in total will impact Sandvik Mining and Rock Solutions in the fourth quarter.

Conference call

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

Call 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 Hellstrom, Head of press and media relations, tel. : +46 70 721 1008.

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Sandvik Group
Sandvik is a high-tech, global engineering group delivering products and services that improve customer productivity, profitability and sustainability. We hold world-leading positions in selected areas – tools and tooling systems for metal cutting; equipment and tools, services and technical solutions for the mining industry and rock excavation in the construction industry; products in advanced stainless steels and special alloys as well as products for industrial heating. In 2020, the Group had around 37,000 employees and a turnover of around 86 billion Swedish kronor in over 160 countries as part of ongoing operations.

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