AZPN - AspenTech to buy metals and mining software firm Micromine in $623M deal

Aspen Technology ( NASDAQ: AZPN ) said Wednesday it agreed to acquire Australian software provider Micromine from private equity firm Potentia Capital and other sellers for A$900M in cash (~US$623).

AspenTech ( AZPN ) said the deal will further its diversification into the metals and mining market and position it in a leadership role to deliver the "Digital Mine of the Future."

The company expects Micromine will be accretive on a free cash flow basis within the first 12 months of the deal closing.

"Digitalization is critical for the metals and mining industry to become sustainably sound and operationally excellent for generations to come," AspenTech ( AZPN ) President and CEO Antonio Pietri said. "Micromine's comprehensive solutions span the breadth of the mining cycle from geological exploration and data management to resource estimation, mine design, planning, scheduling and production control."

Emerson ( EMR ) owns a majority 55% stake in AspenTech.

AspenTech ( AZPN ) is "a highly differentiated industrial software company, whose free cash flow and profitability metrics should now see sustained improvement in the years to come," Chetan Woodun writes in a bullish analysis posted recently on Seeking Alpha .

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