Codan, the Australian developer of satellite communications, radio frequency and metal detection equipment, has acquired Perth, Australia-based mining communications technology company Minetec for up to A$10m (US$10.3m).
Codan has paid Minetec’s…
Codan, the Australian developer of satellite communications, radio frequency and metal detection equipment, has acquired Perth, Australia-based mining communications technology company Minetec for up to A$10m (US$10.3m).
Codan has paid Minetec’s founder and sole shareholder, the former British soldier Greg Anderson, an up-front cash consideration of A$6m (US$6.2m). An additional A$4m (US$4.1m) will be paid if Minetec achieves certain earn-out targets over the next two and a half years.
The acquisition, which was completed on 3 January, was funded entirely from Codan’s existing debt facility.
Codan’s managing director, Donald McGurk, said “Codan has been actively looking for the right acquisition and is pleased to make this entry into the fast growing mining technology services industry. The mining sector offers significant opportunities for future growth, and Australia is considered to be one of the world’s most innovative mining technology communities.”
Minetec was established in 2000, employs approximately 50 staff and provides communications solutions to the mining sector. In recent years, Minetec has developed products that leverage off its communications infrastructure including asset tracking and collision avoidance systems.
Codan will operate Minetec as a stand-alone business unit of the Codan group, and will use it as the foundation for further growth and acquisitions in this sector.
