Monteray acquires Norwood

The run of mining companies turning to the technology sector is far from over with another reverse takeover in the works.

Monteray Mining Group has this morning announced it is acquiring Perth-based Norwood Systems in a transaction that values Norwood at about $8 million.

Norwood has developed a cloud-based technology that enables corporates to have their own private roaming service.

Monteray Mining was established as a gold-focused explorer with a portfolio of projects in West Africa.

Shares in Monteray have hovered around 1 cent for the past year. The value rose 13 per cent after news of the acquisition was released to market this morning.

The strength of Norwood Systems has been growing as its flagship Corporate Roaming Network Access (CORONA) product won various awards.

One of these included recognition in the National iAwards, while Norwood also received awards from the WA Information Technology and Telecommunications Alliance.

Internet service provider iiNet was the first client for Norwood’s CORONA product, which is now used by more than 30 corporate organisations.

Norwood chief executive Paul Ostergaard said the company was extremely thrilled with the reverse takeover agreement.

“The agreement with Monteray will allow us to take CORONA to market in a much more substantial way,” he said.

The agreement is expected to be completed with Monteray relisting and renamed as Norwood Systems in March.

It follows a strong run of technology companies listing on the ASX through flailing mining companies.