Boart Longyear (ASX:BLY) subsidiary Veracio has entered a binding agreement to acquire all shares in drill core scanning specialist Minalyze for US$29.3 million.
The payment under the takeover deal will comprise a mix of cash and promissory notes, which are convertible into shares in Veracio.
Boart Longyear, which has a $414.28 million market capitalisation, notes the cash component of the consideration will be funded from a new US$15 million term loan made available by HPS Investment Partners LLC and other financial institutions under the term loan credit facility between those lenders and Boart and certain of its subsidiaries.
The completion of the transaction is scheduled to occur on 20 September 2023.
Commenting on the buyout, Veracio Chief Executive Officer (CEO) JT Clark says: “This strategic transaction creates immense possibilities for Veracio and Minalyze, where combined expertise will be used to push boundaries that can produce a product portfolio going beyond anything previously available.”
“This strategic transaction creates immense possibilities for Veracio and Minalyze”
Minalyze co-founders Annelie Lunderstrӧm and Mikael Arthursson are expected to join Veracio’s leadership team upon the completion of the acquisition. Minalyze employees will transition to Veracio’s operations following the completion of the transaction.
Lunderstrӧm says: “Joining Veracio is an exciting chapter for us, and together, we believe this combination will enable us to radically accelerate what we’ve both achieved to date.
The combination should also provide unique value to our customers while pushing the industry forward in ways not seen before.”
Boart says Minalyze is a ‘world leader’ in X-ray fluorescence (XRF) core scanning instruments and software for the visualisation of geological data.
A wholly owned subsidiary of Boart Longyear, Veracio offers mining clients a range of solutions that improve, automate, and digitally transform their orebody sciences in exploration, resource definition and production.
Boart Longyear is an ASX-listed provider of drilling services, orebody-knowledge technology, and innovative, safe, and productivity-driven drilling equipment. The company is focused on mining and exploration activities spanning a wide range of commodities such as copper, gold, nickel, zinc, and uranium.
Write to Aaliyah Rogan at Mining.com.au
Images: Boart Longyear