9th May 2011. Zurich, Switzerland, ABB (NYSE:ABB), the global power and automation technology group, has agreed to acquire Mincom to broaden its software portfolio and establish the Group as a leader in enterprise asset management (EAM) software and services.
ABB is acquiring the Brisbane, Australia-based company from Francisco Partners, a private equity group that invests in technology businesses, for an undisclosed sum. The transaction is subject to customary regulatory approvals.
Francisco Partners acquired Mincom in January 2007 for A$315m in an “all cash” transaction. In September 2008 it added Aconex to its portfolio with a A$107.5m private equity injection – one of the largest ever in Australia.
Mincom brings expertise and experience in a range of industries, and a comprehensive set of solutions for applications such as EAM, mining operations and mobile workforce management. Mincom has nearly 1,000 employees and annual revenues of approximately $200 million. With a distribution network in 19 countries, the company is a leading software player in the Asia-Pacific and Latin America regions, with customers including 17 of the top 20 global mining groups, as well as businesses in the energy sector, defense and other asset-intensive industries.
“The acquisition of Mincom is part of our strategy to continuously broaden our software offering, “ said Joe Hogan, CEO of ABB. “Mincom helps us to increase the depth of our enterprise asset management offering, building our position as a leader in the key growth sectors of natural resources and energy. For our customers this means extending the life of their infrastructure, optimizing asset management and reducing the overall cost of ownership.”
Commenting on the transaction, Neil Garfinkel, a Partner and co-founder of Francisco Partners, noted, “The Mincom team has done a terrific job of building a next generation asset management software platform and of extending the leadership position it has established in asset intensive industries over the past 31 years. ABB’s global reach, strong customer relationships and demonstrated commitment to asset management software and solutions leadership make it a superb fit for Mincom’s customers and employees.”
Mincom is a global software and services provider with more than 30 years of experience in providing business solutions to companies in asset-intensive industries – such as mining, defense, energy and public infrastructure – in more than 40 countries around the world. Mincom has approximately 1,000 full-time employees.
Jefferies & Co. was Mincom’s exclusive financial advisor in the transaction. Mincom’s legal advisors were Wilson Sonsini Goodrich & Rosati LLP and Blake Dawson LLP.
To ensure continuity for customers, ABB will retain the Mincom management team and its operations will be added to Ventyx, ABB’s dedicated software business. ABB acquired Ventyx in September 2010 from private equity firm Vista Equity Partners for more than $1 billion. Ventyx had 600 employees and 2009 revenues of about $250 million.
The Ventyx portfolio combines information and operational technologies (IT and OT) to optimize asset performance, integrate business processes and deliver insight into global business operations. Mincom’s strong presence in the natural resources sector is complementary to ABB’s expertise in mining control systems and its leading position in energy management technology.
“Joining forces with ABB is a logical next step in the development of our company and a strong validation of the business, our people and our products,” said Greg Clark, CEO of Mincom. “It will expand our global reach and service capabilities, enabling us to continue building on the business we have fostered over the past three decades.”
ABB (www.abb.com) is a leader in power and automation technologies that enable utility and industry customers to improve performance while lowering environmental impact. The ABB Group of companies operates in around 100 countries and employs about 124,000 people.
About Francisco Partners
Francisco Partners is a leading global private equity firm focused exclusively on investments in technology and technology-enabled services businesses. With approximately $7 billion of capital raised to date, Francisco Partners pursues structured investments in technology companies, targeting investments in private companies, public companies and divisions of public companies, with transaction values ranging from $25 million to over $500 million.
About Mincom Limited
Founded in Brisbane in 1979, Mincom Limited is an international company based in Brisbane, Australia, with more than 25 years’ experience in providing business solutions to asset intensive industries such as mining, utilities, transport, defence and government in more than 40 countries. The company has more than 1,200 staff in 18 offices across Australia, North America, South America, South East Asia, Africa, and Europe.