IMDEX has entered a binding agreement to acquire Norwegian Devico AS at USD 230 million. The deal will reinforce IMDEX’s market-leading position in mining technology and deliver increased market penetration.
IMDEX CEO, Paul House, commented on the acquisition: ‘The proposed acquisition of Devico is consistent with IMDEX’s growth strategy and is a logical next-step. We see significant value in combining our complementary product portfolios, market-leading R&D capabilities and global presence… Devico’s expertise, professionalism and their relentless customer focus match our own and we are excited about what our teams can achieve together for the mining industry. We have commenced integration workstreams and are confident in a smooth transition.’
Devico has a workforce of 200 personnel across 15 locations around the world, with the existing management and technical team seen as a key asset for IMDEX. The deal is expected to close in late February 2023.
A letter from Devico AS CEO, Erlend Olso:
In 1988, Viktor Tokle, together with his wife Bodil, founded Devico and ran it out of his garage. Over the 35 years since its founding, Devico has come a very long way, and has grown from Viktor’s garage to an international conglomerate with 21 companies in 15 different countries, totaling approximately 200 employees, and close to USD 50 million in annual sales. We are the undisputed number 1 global provider of directional drilling services in the mineral exploration space, the number 2 provider of borehole surveying solutions in the same sector, and are also now internationally regarded as a leading supplier to the civil construction industry. We have had tremendous growth over the last few years, with great new products added (and about to be added) to our product portfolio, always with a strong customer focus.
Viktor and his family have remained the majority owners of Devico over all these years, ensuring stability and support for growing both our technology and our people. With the size that Devico has reached, and the complexity involved in its operation, Viktor and his family concluded that it was time to find another owner for Devico. An owner that could help take Devico to the next level and allow it to continue its mission to be the world leader in directional core drilling, borehole surveying and associated software.
Little did we know when we started the sales process that the company chosen in the end would be our largest competitor, IMDEX Limited. On January 18th 2023, IMDEX entered into a binding agreement to purchase Devico. The intent is that the transaction will be finalized by the end of February 2023.
Several highly qualified companies were also interested in, and made an offer for, purchasing Devico. However, IMDEX was chosen as the best fit and the best way forward to reach the goals that we have set as a company.
Over the last couple of months we have spent significant time with the management team at IMDEX to understand their intent and how they want to integrate the two companies. It has become clear that the Management and Board of Directors of IMDEX have great respect for Devico and what we have achieved. Based on our interactions and what we have learned in this process, I truly feel that there is also a great cultural fit, with people that are just as passionate about bringing the best technology and services to the mining industry that we are. Our companies complement each other, both geographically, and with products and services. Together we will be the undisputed number one technology company of its kind in the world!
I am sure many of you, our customers and associates, are wondering what this means to you and what changes may come, and the simple answer is that not much will change in the beginning. Imdex intends to keep the Devico brand name and we will operate with “business as usual” in the foreseeable future.
Devico would not have been what it is today without the great people that make up our organization, nor our past and current client base. It is our highest concern to make sure that our people are taken care of through this process and that our clients high level of support that they are accustomed to, is maintained. If you have any concerns, please don’t hesitate to raise these with your direct Devico contact.
Sincerely, Erlend Olso