- Tech company K2fly (K2F) has executed an agreement to acquire the business assets associated with Decipher for Mining from CSBP and Wesfarmers Chemicals, Energy & Fertilisers
- Decipher provides cloud-based software-as-a-service monitoring and compliance solutions for mining industry customers
- K2fly will acquire Decipher’s business assets for the issue of 11,366,691 fully paid ordinary shares in the company up to 5,345,633 performance shares
- CSBP will become K2fly’s largest shareholder with 10.13 per cent holding
- Completion of the acquisition is expected to occur shortly after shareholder approval is received in March 2021
- K2Fly is up 1.47 per cent, trading at 34.5 cents per share
Tech company K2fly (K2F) has executed an agreement to acquire the business assets associated with Decipher for Mining.
Decipher for Mining, developed and operated by CSBP and Wesfarmers Chemicals, Energy & Fertilisers, offers cloud-based software-as-a-service monitoring and compliance solutions in tailings management and rehabilitation for mining industry customers.
K2fly will acquire Decipher’s business assets for the issue of 11,366,691 fully paid ordinary shares in the company, and up to 5,345,633 performance shares.
The performance shares will convert annually into a number of fully paid ordinary shares equal to 22 per cent of the annual revenues from the Decipher business over a four-year period, following the completion.
A maximum of 5,345,633 fully paid ordinary shares in the company can be issued to CSBP as a result of the conversion of the performance shares. CSBP will also hold a 10.13 per cent interest in the company, with the ability for that interest to increase to 14.22 per cent if all the performance shares convert into ordinary shares.
After K2fly launched its own suite of software to its predominantly mining customers last year, the company says this new acquisition will enhance its offerings, adding tailored monitoring and rehabilitation solutions, as well as underlying platform capability and scalability.
“We are both lean start-up companies and there is virtually no duplication and many upsides to the deal. We are pleased that Anthony Walker, the Decipher CEO, will be joining K2fly in a senior executive position as well as the core Decipher team,” said Nic Pollock, K2fly’s Chief Commercial Officer.
Completion of the acquisition is expected to occur shortly after shareholder approval is received in March this year.
K2Fly is up 1.47 per cent, trading at 34.5 cents per share at 12:24 pm AEDT.