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- K2fly (K2F) is snapping up full control of software and IT specialist Sateva is in a share sale agreement announced to shareholders this morning
- Sateva, like K2fly, is focussed on creating software to streamline the mining and resources industry
- K2fly is buying up the complementary business in a cash and scrip deal worth at least $4 million
- Company CEO Brian Miller says the combined K2fly and Sateva tech will be a “game-changer” for the mining industry
- As part of the deal, Sateva’s founder and Managing Director, Mark Forster, will join the K2fly management team as Chief Development Officer
- K2fly shares are trading just over 4 per cent higher this afternoon and currently worth 37 cents each
K2fly (K2F) is snapping up full control of software and IT specialist Sateva in a share sale agreement announced to shareholders this morning.
The purchase will be made in a mix of cash and scrip worth at least $4 million. As part of the deal, Sateva’s founder and Managing Director, Mark Forster, will join the K2fly management team as Chief Development Officer.
Why the buy?
Sateva provides a range of software and IT consulting services but also develops its own software for mining, resources, and rail industries.
Based in Perth, WA, Sateva has created products like its Maximum Return geology system, designed to help mining companies streamline their production process to manage the block-out process and associated data for large open-pit mines.
The software has already been deployed at the Roy Hill mining operation.
On top of Maximum Return, Sateva is two more major products slated for release before the end of the year.
Sateva pulled in $1.4 million in revenue in the 2020 financial year and currently has $2.96 million in assets.
K2fly CEO Brian Miller said the company is constantly on the lookout for software that will complement its current mining tech products.
“Sateva and our new Block Model Management capabilities will be a game-changer in the mining industry and beyond, as we use modern technologies to dramatically improve what is increasingly a big data management and governance problem for the resources industry,” Brian said.
The new Sateva software is particularly complementary to K2fly’s RCubed software, which helps mining companies quickly and accurately create mining reports to comply with government codes, such as the JORC code in Australia.
K2fly’s Chief Commercial Officer Nic Pollock said the Sateva buyout contributes to three key K2fly strategic objectives:
“It provides additional software solutions that address our technical assurance capability in mining and ESG. It increases our opportunities to deliver improving Annual Recurring Revenues and further strengthens our share of software solutions in major iron ore producers. As a significant additional bonus, we get to leverage Mark Forster and his team to further enhance our local development capability for further scale,” Nic explained.
Shares in K2fly spiked this morning but have since pared back the win slightly. At 1:16 pm AEDT, K2fly shares are worth 37 cents each.
