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Sandvik to Acquire Australian Mine Planning Software Company Deswik
Monday 06 December 2021

Sweden-based engineering company Sandvik has signed an agreement to acquire Australian-based mine planning software provider Deswik, the company said.

Deswik will be part of a newly formed division Digital Mining Technologies within business area Sandvik Mining and Rock Solutions.

By acquiring Deswik, Sandvik gains a supplier of integrated software platforms that support digitalization throughout mine planning stages, with more than 10,000 current licenses.

Deswik will 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, incorporating electrification at the mine planning stage.

Its core software suite includes computer-aided 3D mine design, scheduling, operations planning, mining data management and geological mapping.

Deswik also offers a range of consultancy services, including mine planning, scoping, software implementation and training support.

Privately-owned Deswik, established in 2008 and headquartered in Brisbane, has approximately 300 employees and operates 14 offices in 10 countries.

Deswik's revenue per October 2021, on a rolling twelve month basis, totaled AUD 79m, of which the share of recurring revenue was approximately 45%, and with an EBITA margin of approximately 30%.

The transaction is expected to close during 1Q22, subject to relevant regulatory approvals.

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

Sandvik is engineering company specializing in metal cutting, digital and additive manufacturing, mining and construction, stainless and special steel alloys, and industrial heating. The company was founded in Sweden in 1862.
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Date Published: 06/12/2021

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