K2fly locks in $3.7m software deal with Wesfarmers

Western Australian tech company K2fly has agreed to purchase business assets associated with Wesfarmers’ Decipher for Mining software.

Decipher – developed and operated by Wesfarmers subsidiaries CSBP and Wesfarmers Chemical, Energy, and Fertilisers – offers cloud-based software-as-a-service (SaaS) monitoring and compliance solutions in tailings management and rehabilitation to the mining industry.

K2fly will acquire Decipher’s business assets via the issue of about 11.4 million ordinary shares (worth $3.7 million) and up to a further 5.4 million performance shares.

CSBP will become K2fly’s largest shareholder post transaction, with about a 10 per cent holding.

K2fly chief commercial office Nic Pollock said the business, which had been partnered with Decipher for nearly a year, had found synergies between both companies’ offerings.

“We are both lean startup companies and there is virtually no duplication, and many upsides to the deal,” he said.

Decipher chief executive Anthony Walker will join K2fly in a senior executive position, as part of the deal.

“We have formed a very close working relationship with the K2fly team, and we all share a passion for delivering better ESG (environmental, social and governance) monitoring and compliance outcomes to the mining industry and the communities in which they operate,” Mr Pollock said.

“This transaction will dramatically increase our pace of delivery on these aspirations.”

K2fly closed up 5.9 per cent on the ASX today, to trade at 36 cents per share.