Business
Weir to acquire Motion Metrics
Weir to acquire Motion Metrics.
About this update from Weir Group Plc
[{"type":"text","content":"\n \n \n \n RNS Number : 4943R\n Weir Group PLC\n 05 November 2021\n \n \n \n \n Weir to acquire Artificial Intelligence and Machine Vision technology leader Motion Metrics \n \n \n \n \n \n The Weir Group has agreed to acquire Motion Metrics, a leading Canada-based global mining technology business, for an initial consideration of £89m1 payable in cash upon completion, subject to customary net debt and working capital adjustments. \n \n \n Motion Metrics is the market leading developer of innovative Artificial Intelligence (AI) and 3D rugged Machine Vision Technology used in mines worldwide. Its technology helps miners increase safety, efficiency and sustainability of their operations. As part of the agreement, Motion Metrics Vancouver headquarters will become Weir's global centre for excellence in AI and Machine Vision technology.\n \n \n Motion Metrics applications are highly complementary to Weir's product portfolio. It will join the ESCO division reflecting the early adoption of its technology in ground engaging tools (GET) where ESCO is an established global leader. Motion Metrics AI and Machine Vision capabilities are expected to be leveraged across the whole mining value chain served by the Weir Group. \n \n \n Transaction highlights\n \n \n \n \n \n ●\n \n \n \n \n Strengthens Weir's industry leadership in making mining more sustainable and efficient\n \n \n \n \n \n \n ●\n \n \n \n \n Significantly increases the Group's capability in critical AI and Machine Vision Technologies\n \n \n \n \n \n \n ●\n \n \n \n \n Fully aligned to ESCO's ambitious growth strategy through further digitisation of its portfolio\n \n \n \n \n \n \n ●\n \n \n \n \n Enables rapid globalisation of Motion Metrics technology through Weir's global network\n \n \n \n \n \n \n ●\n \n \n \n \n Highly complementary to Weir's aftermarket-focused business model\n \n \n \n \n \n In 2021, Motion Metrics generated revenues of £9m1 and was modestly profitable. Initial integration efforts will focus on leveraging Weir's global sales network and the ESCO division's large installed base to rapidly expand adoption of this value enhancing technology by our mining customers thereby driving significant revenue growth. Motion Metrics is expected to be accretive to ESCO's margins by 2023 with returns expected to exceed the Group's cost ...