Swedish engineering company Sandvik has agreed to acquire Newtrax Technologies Inc, a Montréal-based provider of internet-of-things and analytics technology for monitoring underground operations.
Terms weren’t released for the deal, which is expected to close in Q2 2019.
Founded in 2008, Newtrax is led by Alexandre Cervinka. The company will be run as an independent unit in Sandvik’s mining and rock technology group.
Sandik said the acquisition will create a stream-lined digital solution to improve safety and efficiency in underground mining.
Newtrax has been backed since 2014 by Jolimont Global Mining Systems, an Australian private equity fund backed by Jolimont Capital and Resource Capital Funds.
Sandvik Acquires Digital Mining Technology Company Newtrax
STOCKHOLM, April 17, 2019 /PRNewswire/ — Sandvik acquires privately-owned Newtrax, a supplier of leading technology in wireless connectivity to monitor and provide insights on underground operations, including people, machines and the environment.
“By including Newtrax into the Sandvik family we further strengthen our leading position in areas related to automation and digitalization,” says Henrik Ager, President of Sandvik Mining and Rock Technology.
Sandvik’s leading suite of digital tools for analyzing and optimizing mining production and processes, coupled with Newtrax’s leading technology in wireless IoT connectivity will create a powerful, stream-lined digital solution to improve safety and efficiency in underground mining operations.
“By combining our current offering OptiMine® with the Newtrax offering we can help customers achieve a more efficient use of their resources. The system is agnostic to network or brand of equipment, facilitating a flexible customer solution,” says Patrick Murphy, President of Sandvik Rock Drills and Technologies Division.
Newtrax is headquartered in Montréal, Canada and in 2018 the company generated revenues of about 26 million CAD with 120 employees. Newtrax will be run as an independent business unit within the division Rock Drills and Technologies in the business area Sandvik Mining and Rock Technology.
The transaction is expected to close in the second quarter 2019. Parties have agreed not to disclose the purchase price. The deal is initially slightly accretive to earnings per share.
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Ann-Sofie Nordh, Vice President Investor Relations, phone: +46 8 456 14 94 or Martin Blomgren, Press and Media Relations Manager, phone: +46 70 577 0549.