Envirosuite and Hitachi announce strategic partnership with $10m investment deal
Australian environmental technology specialist Envirosuite (ASX: EVS) has agreed to a $10 million investment by global mining services company Hitachi Construction Machinery (HCM) for the acquisition of a 12% stake in the company.
The companies have secured a two-tranche subscription agreement that will see HCM purchase a minimum of 158.5 million Envirosuite shares priced at $0.058 each, representing a premium of 32% to the company’s seven-day volume-weighted average price.
Funds from the investment will be used to advance Envirosuite’s industrial solutions and market penetration in the mining sector, focusing on assisting customers with site productivity improvements and ESG commitments through digital technology.
Top-tier access
Envirosuite chief executive officer Jason Cooper said the partnership would give the company access to the top tier of the world’s mining industry.
“Together, we expect to set new standards in operational management and environmental responsibility for the industry, which align with our combined vision for a sustainable world,” he said.
“Hitachi’s investment represents definitive industry validation of our technology at the highest level and will showcase our ability to help customers achieve their productivity and ESG goals through a site-wide digital solutions approach.”
Strategic relationship
HCM president (mining business unit) Eiji Fukunishi said the company was keen to invest in a strategic relationship with Envirosuite.
“Envirosuite’s decades of experience and commitment to environmental and social responsibility while helping customers achieve productivity goals aligns perfectly with our aim to realise a safe and sustainable society,” he said.
“Through this investment, we hope to leverage Envirosuite’s technology, analytical capabilities and know-how to further refine our own solutions in the mining business.”
Collaboration agreement
Envirosuite and HCM have also entered into a strategic collaboration agreement aimed at accelerating the development and adoption of environmental and safety intelligence technology within the mining industry, providing customers with leading-edge tools to help achieve ESG and net zero-related objectives.
The combined expertise of both companies is expected to increase market opportunities, with the goal of driving sustainable practices and operational efficiencies across the sector.
“By leveraging our world-leading environmental intelligence platform, deep domain knowledge around mining operations and existing cost base, this collaboration is expected to deliver insights into environmental and safety intelligence at an operational and executive management layer not currently available to the mining industry,” Mr Cooper said.
“It demonstrates a commitment by Envirosuite and HCM to fostering a more sustainable future and enabling the mining industry to achieve its environmental and net zero objectives with greater efficiency and impact.”