Weir Group, a major engineering company, has announced a binding agreement to acquire Micromine, a Perth-based global leader in mining software solutions, for £657 million ($1,310 million).
This strategic move is set to create a sector-leading digital optimisation platform for the mining industry.
Micromine, a top-tier software provider, offers comprehensive solutions across the upstream mining value chain, supporting critical operations from exploration to mine design, planning, and operations in various mining applications.
The acquisition aligns with Weir’s strategy to invest in technology that accelerates smart, efficient, and sustainable mining practices.
Jon Stanton, Chief Executive Officer of Weir, emphasised the significance of this acquisition, stating: “The combined force of Micromine and Weir will create a sector-leading globally scaled platform to optimise performance across the mining process.”
He added that Micromine’s high-quality business model complements Weir’s aftermarket-focused approach and current digital solutions.
The deal presents a compelling value creation opportunity for Weir.
Micromine has demonstrated strong growth, with a revenue CAGR of approximately 25 per cent over recent years.
The company’s business model is characterised by industry-leading recurring software-as-a-service (SaaS) subscription income, accounting for about 90 per cent of its revenue.
This acquisition is expected to be immediately accretive to Weir’s growth and margins.
Weir plans to leverage its global distribution channels to accelerate Micromine’s growth further.
The integration of Micromine’s expertise with Weir’s engineering technology and customer networks is anticipated to enhance productivity and sustainability in the global mining industry.
The transaction, expected to close in Q2 2025 subject to clearance by the Foreign Investment Review Board of Australia, will be funded through a combination of existing cash resources and new debt facilities.
Post-acquisition, Weir’s net debt to EBITDA ratio is projected to be below 2.0x by December 2025 and under 1.5x by the end of 2026.
As the mining industry continues to embrace digital transformation, this acquisition positions Weir at the forefront of technological innovation in the sector.
The combined capabilities of Weir and Micromine are set to deliver enhanced solutions for optimising the end-to-end mining value chain, promising a new era of efficiency and sustainability in mining operations.
