Orica shares slide 2.7% amid takeover announcement
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More news: Shares in explosives company Orica have fallen 2.7% by the afternoon, after it announced a takeover of Canadian geotechnical software vendor Terra Insights.
By 2:35pm AEDT, Orica was the worst performer of the 20 biggest materials stocks, and one of only four from the sector in the red.
Orica to buy Canadian geotech vendor for $559 million
The news: Mining equipment provider Orica is buying Canadian geotechnical software vendor Terra Insights for C$505 million ($559 million).
It says the acquisition will complement Orica Digital Solutions, which includes its GroundProbe technology.
The context: Orica said the purchase will be funded by existing cash and undrawn bank debt facilities. It said the buy would build on the success of its GroundProbe technology, increase Orica's geographical exposure and accelerate growth in Orica Digital Solutions.
The purchase is expected to be completed in the first half of 2024, pending regulatory approvals.
What they said: "Terra is highly complementary to Orica Digital Solutions and our GroundProbe business, adding additional products and capability across the mining and civil infrastructure value chains. The acquisition allows Orica to offer a more complete geotechnical offering to customers as well as adding an established stream of recurring software revenue," Orica chief executive Sanjeev Gandhi said.
The source: ASX announcement
