Weir Group, the Glasgow-based global mining and engineering FTSE 100 firm, said it entered into a binding agreement to acquire Mining Software Holdings Pty Ltd (Micromine), a company based in Perth, Australia, for an enterprise value of £657 million.
Weir Group also published its 2024 results showing revenue from continuing operations fell 5% to £2.506 billion but adjusted profit before tax rose 4% to £428 million. Orders reported were £2.523 billion. Full year dividend rises 4% to 40p per share.
Weir shares rose about 3% to around £23.66 and are up 26% for the past year, giving the firm a current stock market value of around £6 billion.
“Micromine is a top-tier global software provider to the mining industry, with comprehensive solutions across the upstream mining value chain,” said Weir.
“It supports critical mining operations from exploration through mine design and planning, operational scheduling and mining operations in hard ore, soft ore and underground applications.”
On the acquisition, Weir Group CEO Jon Stanton said: “The acquisition of Micromine is a significant step in our strategy of investing in technology to accelerate smart, efficient and sustainable mining.
“The combined force of Micromine and Weir will create a sector-leading globally scaled platform to optimise performance across the mining process.
“In Micromine, we are adding an established, high-quality business and proven performer that is complementary to Weir’s aftermarket-focused business model and current digital solutions. This acquisition provides a compelling opportunity for strong value creation in the immediate and longer term.
“The Micromine team are experts in their field and share Weir’s innovative mindset and customer focus. We look forward to welcoming them to Weir and working with them to provide customers with unparalleled technology and insights to enhance their operations.
“Today is an important and exciting day. Combining Weir’s engineering technology expertise and customer networks with Micromine’s leading software solutions and diversified customer base will allow us to further harness digital technology to drive productivity and sustainability for the global mining industry.”
On the annual results, Stanton said: “Weir is delivering on its mission to provide mining technology for a sustainable future and executing well against the commitments set out in our equity case. We are shaping innovation that will enable the mining industry to scale up and clean up and delivering strong outcomes for customers. At the same time our Performance Excellence programme has created the efficient scalable platform that positions Weir for compounding growth in the years ahead.
“The power of our transformed platform was evident in our strong execution in 2024 with operating margins and cash conversion significantly ahead of expectation, supported by strengthening demand conditions in the second half.
“As we go into 2025, we have a growing pipeline of project bids, a strong order book, and see positive aftermarket demand drivers in mining. For the full year, we expect to deliver growth in revenue, operating profit and margins. We expect our Performance Excellence programme will deliver incremental savings of £20m in 2025, and cumulative savings of £80m through 2026, moving our operating margins sustainably beyond 20%.”