Sandvik has acquired the privately-owned Newtrax, a supplier of digital underground mining technology.
Newtrax, founded in 2008, creates wireless connectivity systems 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,” said Henrik Ager, president of Sandvik Mining and Rock Technology.
Sandvik’s suite of digital tools for analyzing and optimizing mining production and processes, coupled with Newtrax’s leading technology in wireless Internet of things (IoT) connectivity will create a 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,” said Patrick Murphy, president of Sandvik Rock Drills and Technologies Division.
Newtrax is headquartered in Montréal, Quebec and employs about 120 people. In 2018, the company generated revenues of about $26 million.
Sandvik plans to run the company as an independent business unit within its Rock Drills and Technologies segment in the business area of Sandvik Mining and Rock Technology.
The combination of Newtrax and Sandvik OptiMine will include: telemetry for all equipment brands; personnel tracking and safety; and environmental monitoring and control.
“Together, Newtrax and Sandvik provide a seamless offering that is OEM and network independent,” said Alexandre Cervinka, president of Newtrax. “With Newtrax as the nervous system and Sandvik OptiMine as the brain of the mine, this is the most comprehensive digital offering for underground mining.”
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.
Newtrax will continue to work with other vendors in the mining digital ecosystem.