Potentia Capital gets $900m for mining software group Micromine

Come exit day, Micromine’s software is used at more than 2000 sites in 90 countries, and has a 35-year track record servicing all the major mining hubs globally.

It has 280 employees across 22 offices and the Tim Reed-led deal is worth $900 million, all cash.

It’s a big win for Potentia, a Sydney-based tech sector investment firm run by Tim Reed and Andrew Gray, at a time when the exit environment isn’t straightforward for private equity. The IPO window has closed, listed markets sold off and wider economic uncertainty has made buyers more cautious.

Potentia quietly cut the deal with AspenTech, a US group with a $US12 billion market capitalization, and operating across a vast array of sectors from chemicals to resources, packaged goods, transport and power.

AspenTech’s trying to deliver the “digital mine of the future” and sees Micromine as a way to service mining customers.

“Combining AspenTech’s product portfolio and worldwide reach with Micromine’s mission-critical technology and leadership in the mining industry will equip customers with a comprehensive offering and the end-to-end ability to drive efficiencies across the entire mining value chain, while helping them meet the dual challenge,” AspenTech CEO Antonio Pietri said in a statement.

The deal is subject to regulatory approvals. JPMorgan and JWS advised Potentia, while Goldman Sachs and DLA Piper advised the buyer.

It’s Potentia’s third exit in the past 18 months, and comes has restocked its acquisition kitty with by raising $635 million for its second fund.

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