Publicly listed software services provider to the mining industry K2fly has acquired Perth-based software solutions and IT consulting outfit, Sateva.
The acquisition price includes $2 million cash and share consideration equal to $2 million.
Sateva specialises in building IT applications for the resources sector in areas such as exploration, grade control, planning, ore tracking, inventory management, reconciliation and data management. Sateva's software products will tie directly into K2fly's own SaaS-based Resource Governance software solutions.
As a result of the acquisition Sateva founder and managing director, Mark Forster will join K2fly’s executive ranks as chief development officer. Sateva customers include Rio Tinto Iron Ore, Roy Hill and Fortescue Metals Group. RAC Insurance is also a client.
“We are constantly looking for complementary software solutions that can further improve and extend our customer experience,” K2fly CEO, Brian Miller said. “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 big data management and governance problem for the resources industry.”
The acquisition of Sateva is set to bring additional depth to K2fly’s technical assurance that will underpin its resource inventory solutions and provide richer functionality for resources clients, particularly aimed at senior geologists, who K2fly says are its main target audience.
It is also in the process of developing a new Block Model Management which aims to improve model management for multi-site global miners and provide a direct line of sight and governance from the block model to the annual inventory report, which fits in with producing annual mineral resources and reserves report – an area governed by K2fly’s Resource Inventory solution, RCubed.
K2fly chief commercial officer, Nic Pollock said the acquisition contributed to three strategic objectives in providing additional software solutions to address its technical assurance capability in the mining space, increase its opportunities to deliver improved annual recurring revenues and strengthens its share of software solutions in major iron ore producers.
“As a significant additional bonus, we get to leverage Mark Forster and his team to further enhance our local development capability for further scale,” he said.
In 2019, K2fly purchased RCubed, which the company says 14 tier one and two mining companies were using the cloud product, and the latest RCubed Reconciliation module was also gaining momentum with several paid pilot studies underway.