K2fly acquires WA business for $2m

28/10/2020 - 13:00

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ASX-listed K2fly has boosted its position in the iron ore sector after announcing the acquisition of WA mining software company SATEVA.

SATEVA's current clients include Rio Tinto, Roy Hill and Fortescue Metals Group. Photo: K2fly

ASX-listed K2fly has boosted its position in the iron ore sector after announcing the acquisition of Western Australian mining software company SATEVA.

SATEVA provides software solutions and IT consulting services to the mining, resources and rail industries. Its current clients include Rio Tinto, Roy Hill and Fortescue Metals Group.

SATEVA is also developing a new solution for block model management, designed to simplify model management for multi-site miners.

The business generated $1.4 million in revenue in the last financial year, and has about $3 million worth of assets.

Its cash balance stood at $2.6 million at September 30, with zero debt.

K2fly said acquiring SATEVA would enhance its position in the iron ore sector. 

The company will pay $1 in cash for each $1 of consolidated net assets of SATEVA, as well as $2 million worth of K2fly shares.

K2fly chief executive Brian Miller said the business was constantly looking for complementary software solutions.

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 bid data management and governance problem for the resources industry,” Mr Miller said.

SATEVA managing director and founder, Mark Forster, will join the K2fly executive team as chief development officer.

Mr Foster will be issued $50,000 in options, at a zero exercise price, based on performance metrics linked to the SATEVA software.

K2fly was trading 4 per cent higher at 1:16pm AEDT to $37 cents.

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