The founders of Osborne Park company Immersive Technologies, which is a world leader in the development of training simulators for the mining industry, has taken the unusual step of buying back full ownership of the business from a venture capital investor.
Immersive was able to buy out Sydney-based investment company Equity Partners after enjoying a strong increase in sales and earnings.
It has gone from a $1.3 million loss in 2004 to a small profit in 2005, and a $2.2 million profit in the year to June 2006, according to accounts lodged with the Australian Securities and Investments Commission.
The improved earnings have been underpinned by a rapid increase in sales, which have grown from $6.9 million in 2004 to $17.4 million last year.
Immersive was founded in 1993 by brothers Peter and Wayde Salfinger, who still run the business.
They remained the sole shareholders until 2003, when Equity Partners invested more than $2 million to support expansion of the business.
The expansion has included the opening of sales and support offices in Brisbane, the US and South Africa, as well as increased spending on product manufacturing and product development.
With staff numbers growing to more than 100, the company also opened a new head office in Osborne Park in May, allowing it to separate its product development activities from its nearby manufacturing site.
“We have experienced rapid growth in the past two years and, judging by the current level of interest in our products and services, we are set for a further period of expansion,” chairman Roderick Brown told the official opening.
The buy-out of Equity Partners involved the payment of $3 million in three instalments.
The final instalment was paid last week, resulting in the Salfinger brothers resuming full ownership of the business.
This represented an unusual exit for Equity Partners, since venture capital investors normally make a profit by selling the business to a competitor or floating it on the stock market.
Immersive spent the first six years of its life focused on R&D and sold its first simulator in 1999.
It now has nearly 80 Advanced Equipment (AE) simulators being used in 16 countries by 45 of the world’s leading mining, mine contracting and equipment supply companies.
Copper producer Phelps Dodge has become the largest user of AE simulators, with six units at its open pit mines.
Immersive’s commercial strategy has also focused on building relationships with equipment manufacturers such as Caterpillar.
The company promotes both the safety benefits and efficiency gains that can flow from haul truck drivers and other workers being trained on its simulators.
