Sandvik to acquire Universal Field Robots

Rhea-AI Summary

Sandvik (SDVKY) has signed an agreement to acquire Universal Field Robots (UFR), an Australia-based provider of autonomous interoperable solutions for mining markets. UFR's portfolio, built on a common autonomy platform, complements Sandvik's automation offering with OEM-agnostic robotic solutions for various mining equipment. This acquisition will expand Sandvik's addressable market and strengthen its AutoMine® platform's position. UFR, with about 40 employees and headquartered in Brisbane, generated revenues of approximately SEK 80 million in the financial year ending June 2024. The transaction is expected to close in Q4 2024, with a positive impact on Sandvik's earnings per share. The purchase price was not disclosed.

Positive

• Expansion of Sandvik's addressable market in mining automation
• Strengthening of Sandvik AutoMine® platform's market position
• Addition of OEM-agnostic robotic solutions to Sandvik's portfolio
• Positive impact expected on Sandvik's earnings per share
• Complementary technology to enhance Sandvik's existing automation offerings

Negative

• impact on Sandvik's EBITA margin
• Undisclosed purchase price, potentially affecting transparency for investors

STOCKHOLM, Aug. 27, 2024 /PRNewswire/ -- Sandvik has signed an agreement to acquire Universal Field Robots (UFR), a fast-growing Australia-based provider of autonomous interoperable solutions for the surface mining and underground mining markets. UFR will be reported in Digital Mining Technologies, a division within business area Sandvik Mining and Rock Solutions.

UFR's solution portfolio is built on a common autonomy platform, which is a strong complement to Sandvik's automation offering and includes OEM (Original Equipment Manufacturer) agnostic robotic and autonomous solutions for trucks, loaders and auxiliary equipment. The acquisition will help to increase the addressable market for Sandvik and further strengthens the market position of Sandvik AutoMine^® - the world's leading mining automation platform. Adding to the AutoMine^® platform's existing capabilities to integrate third party equipment, UFR will significantly expand the number of compatible third-party equipment types, providing customers with flexible opportunities to optimize the performance of their full mining equipment fleets, regardless of the OEM.

"Universal Field Robots is an important strategic addition to Sandvik Mining and Rock Solutions, which will strengthen our growth potential and provide key capabilities in the development of our mining automation solutions portfolio going forward," says Stefan Widing, President and CEO of Sandvik. 

UFR has approximately 40 employees and is headquartered in Brisbane, Australia. In the financial year that ended in June 2024, the company generated revenues of approximately SEK 80 million. The impact on Sandvik's EBITA margin will be limited. The impact on Sandvik's earnings per share (excluding non-cash amortization effects from business combinations) will be positive. The parties have agreed not to disclose the purchase price. The transaction is expected to close during the fourth quarter of 2024.

Stockholm, August 27, 2024
Sandvik AB

For further information, contact:
Louise Tjeder, VP Investor relations, phone: +46 (0) 70782 6374 or Johannes Hellström, Press and Media Relations Manager, phone: +46 (0) 70721 1008

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Sandvik to acquire Universal Field Robots

 

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SOURCE Sandvik

FAQ

What company is Sandvik (SDVKY) acquiring?

Sandvik is acquiring Universal Field Robots (UFR), an Australia-based provider of autonomous interoperable solutions for the surface and underground mining markets.

How will the acquisition of UFR affect Sandvik's (SDVKY) market position?

The acquisition will expand Sandvik's addressable market and strengthen the market position of its AutoMine® platform, which is a leading mining automation platform.

What was UFR's revenue in the last financial year before the acquisition by Sandvik (SDVKY)?

In the financial year ending June 2024, UFR generated revenues of approximately SEK 80 million.

When is the Sandvik (SDVKY) acquisition of Universal Field Robots expected to close?

The transaction is expected to close during the fourth quarter of 2024.

How will the acquisition of UFR impact Sandvik's (SDVKY) earnings per share?

The impact on Sandvik's earnings per share (excluding non-cash amortization effects from business combinations) is expected to be positive.