Global engineering company Weir Group has agreed to acquire Motion Metrics, a Canadian mining technology business, for an initial consideration of £89-million.

Motion Metrics is a developer of innovative artificial intelligence (AI) and three-dimensional rugged machine vision technology used in mines worldwide. 

Its technology helps miners increase the safety, efficiency and sustainability of their operations. 

As part of the agreement, the Motion Metrics Vancouver-based headquarters will become Weir’s global centre for excellence in AI and machine vision technology.

Motion Metrics applications are complementary to Weir’s product portfolio. It will join Weir’s Esco division, which is, in its own right, a global leader in ground engaging tools.

Motion Metrics AI and machine vision capabilities are expected to be leveraged across the mining value chain served by Weir.

Weir says the acquisition will strengthen the company’s industry leadership in making mining more sustainable and efficient, as well as increase the group’s capability in critical technologies.

Initial integration efforts will focus on leveraging Weir’s global sales network and the Esco division’s large installed base to rapidly expand adoption of this value-enhancing technology by mining customers, thereby driving revenue growth.   

Motion Metrics is expected to be accretive to Esco’s margins by 2023 with returns expected to exceed the group’s cost of capital by 2024.

Up to a further £59-million will be payable in cash by Weir at the end of 2024, depending on revenue and profit performance. The transaction will be funded through cash and existing banking facilities. 

Weir expects integration costs over the next two years to total £3-million.

Weir group CEO Jon Stanton comments that the combination of Weir and Motion Metrics will be extremely powerful and reflects the group’s 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 three-dimensional machine vision technology and data science that is applicable across the group. 

“This acquisition is fully aligned with our strategy and our commitment to grow ahead of our markets, expand our margins and significantly reduce our customers’ environmental footprint.” 

In addition to its headquarters in Vancouver, Motion Metrics has offices in Chile, Australia, Brazil, Russia and South Africa. 

The business employs around 125 people and is focused largely on research and development, alongside sales and field support. 

Motion Metrics founder and CEO Dr Shahram Tafazoli will continue to lead the business when it joins Weir, overseeing the new Weir centre for excellence in AI and machine vision technology.