Sandvik completes the acquisition of the leading mine planning software company Deswik

Rhea-AI Summary

Sandvik has successfully completed its acquisition of Deswik, an Australian leader in mine planning software, as of April 4, 2022. Deswik generated AUD 79 million in revenue over the last twelve months, with 45% coming from recurring sources and an EBITA margin of 30%. This acquisition is expected to be accretive to Sandvik's earnings per share, excluding non-cash amortization effects from business combinations. Deswik will now operate under the newly established division, Digital Mining Technologies, within Sandvik Mining and Rock Solutions.

Positive

• Deswik's strong revenue of AUD 79 million with a 30% EBITA margin indicates solid financial performance.
• The acquisition is expected to enhance Sandvik's earnings per share significantly.
• Integration of Deswik will expand Sandvik's capabilities in digital mining technologies.

Negative

• None.

SANDVIKEN, Sweden, April 4, 2022 /PRNewswire/ -- Sandvik has completed the previously announced acquisition of the Australian-based Deswik, the leading and fastest growing major provider of mine planning software. Deswik will be part of a newly formed division Digital Mining Technologies within business area Sandvik Mining and Rock Solutions.

Deswik's revenue per October 2021, on a rolling twelve month basis, totaled AUD 79 million, of which the share of recurring revenue was approximately 45 percent, and with an EBITA margin of approximately 30 percent. Impact on earnings per share (excluding non-cash amortization effects from business combinations) will be accretive.

Stockholm, April 4, 2022

Sandvik AB

For further information, contact Louise Tjeder, VP Investor relations, phone: +46 (0) 70782 6374 or Johannes Hellström, Press and Media Relations Manager, phone: +46 (0) 70721 1008.

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Sandvik completes the aquisition of Deswik

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SOURCE Sandvik

FAQ

What is the significance of Sandvik's acquisition of Deswik?

The acquisition enhances Sandvik's capabilities in digital mining technologies, allowing for better mine planning software.

What were Deswik's financial metrics prior to the acquisition?

Deswik recorded AUD 79 million in revenue with approximately 45% coming from recurring revenue, and had a 30% EBITA margin.

When was the acquisition of Deswik completed?

The acquisition was completed on April 4, 2022.

How will the acquisition impact Sandvik's earnings?

The acquisition is expected to be accretive to Sandvik's earnings per share, excluding non-cash amortization effects.

What division will Deswik be part of after the acquisition?

Deswik will be part of the newly formed division, Digital Mining Technologies, within Sandvik Mining and Rock Solutions.