Explosives manufacturer Orica (ASX:ORI) concluded its 2023 on a high note with the acquisition of a Canadian company for more than half a billion dollars.
On Wednesday morning, Orica announced its purchase of Terra Insights, a Canadian sensors and data delivery company, for $C505 million ($A559.9 million), as reported to the ASX.
Shareholders can rejoice as Orica intends to finance the transaction using its existing cash and bank facilities, eliminating the need for new capital.
Terra, headquartered in Canada, specializes in innovative sensors and data delivery technology for geotechnical, structural, and geospatial monitoring in the mining and infrastructure sectors. The acquisition is slated for completion in the first half of 2024, coinciding with the final six months of Orica’s 2023-24 financial year.
Orica CEO Sanjeev Gandhi stated in the press release that Orica has maintained a business relationship with Terra for nearly a decade.
“Terra is highly complementary to Orica Digital Solutions and our GroundProbe business, enhancing our product offerings and capabilities across the mining and civil infrastructure value chains,” he noted.
“This acquisition enables Orica to provide a more comprehensive geotechnical solution to customers, along with a well-established source of recurring software revenue.”
“This acquisition strongly aligns with our Digital Solutions strategy and our growth in the mining and infrastructure sectors. We are enthusiastic about the medium to long-term opportunities this will create for Orica,” Mr. Gandhi conveyed in Wednesday’s statement.