Western Australia systems integrator and software vendor, K2fly will be strengthening its reach into the resources sector after acquiring the assets of Prodmark relating to the resource and reserves reporting software solution, RCubed.
K2fly will pay $450,000 in an all-cash transaction plus executive performance incentives in the next three years based on revenue targets to Prodmark.
RCubed’s software generates resource and reserve reports, and will be combined with Infoscope’s enterprise land management software.
In 2017, K2fly acquired Infoscope, which helped to mark its entry into the software market for the mining industry.
The combination of the two software offerings is part of K2fly's long-term strategy to provide a comprehensive solution for resource companies to manage their environmental, social and governance responsibilities through delivering sustainability reports.
The latest acquisition will expose K2fly to more major mining customers such as Teck Resource, Anglo Gold Ashanti and Impala Platinum, and will further enhance its SaaS solution across 22 countries, 33 commodities and more than 65 locations.
As part of the acquisition, K2fly will take on RCubed’s 12 existing staff including current CEO, Jan de Kock and CTO, Chris Jones; and its office facilities based in Centurion, outside of Johannesburg.
K2F CEO, Brian Miller, said it had been looking for complementary software solutions in the resources sector for some time.
“The rapid growth in all things environmental, social and governance (ESG) in resource companies needs to be adequately supported by standards-driven, auditable software solutions that can address current and future regulatory reporting and social license narrative,” K2F chief commercial officer, Nic Pollock, said. “Increasingly it will contribute towards any resource company’s valuation, and costs of capital.”