Sam is a professional trader and the lead stock market news writer at AskTraders. After starting his career in the forex market, Sam now focuses on gold and stocks with a preference for fundamental and macroeconomic analysis.
Shares of engineering firm Weir Group are climbing Friday after it announced a deal to acquire Motion Metrics, a global mining technology business.
Weir will pay an initial price of £89 million in cash to acquire the Canada-based company. In addition, Weir will need to pay a further £59 million in cash at the end of 2024, depending on revenue and profit performance.
The company will fund the transaction through cash and existing banking facilities.
Motion Metrics developed Artificial Intelligence (AI) and 3D rugged Machine Vision Technology used in mines globally. Its technology helps miners increase the safety, efficiency, and sustainability of their operations. Weir said the company is highly complementary to its product portfolio.
The agreement will see Motion Metrics Vancouver headquarters become Weir's global centre for excellence in AI and Machine Vision technology.
In 2021, Motion Metrics generated revenues of £9 million.
Jon Stanton, Weir Group CEO, said: “The combination of Weir and Motion Metrics will be extremely powerful and reflects our ambition to play a leading role in mining's technology transformation.
“Motion Metrics not only provides access to innovative and highly relevant technology that will accelerate growth in our ESCO division, but it also brings world-class expertise in AI, rugged 3D Machine Vision technology and data science that is applicable across the Group.”
Weir's share price is up 3% on the news at 1,825.5p.
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