Perenti Global Ltd, the owner of contract mining major Barminco and drill services company Ausdrill, has announced that it has successfully executed a share sale agreement in relation to a strategic investment by Sumitomo Corporation in Idoba Pty Ltd, Perenti’s technology informed services business. The transaction further strengthens Sumitomo’s commitment to the Idoba business, following the Memorandum of Understanding announced in February 2022.

Idoba is a name that was co-created using human and artificial intelligence input, which connected the Greek word eidos meaning ‘essence’ and the Japanese term ‘ba’, meaning knowledge mobilising space. It will provide digital product and technology service offerings to mining and mining service clients with revenue and earnings generated from these services.

Under the Agreement, Sumitomo will acquire 10% of the issued shares in Idoba for a total of A$5.4 million. This implies a current Idoba equity value of A$54 million and enterprise value of A$80 million, Perenti says “reflecting the unique value proposition of the Idoba ecosystem, and the significant embedded growth potential within both its consulting services and suite of Software as a Service (SaaS) products.“

The completion of the transaction is not subject to any unsatisfied conditions precedent and is expected within 10 business days. The proceeds of sale will be recycled across the business and in–line with the principles of Perenti’s Capital Management Policy.

The investment by Sumitomo is expected to bring substantial benefits to the Idoba business, primarily through the ability to harness Sumitomo’s expertise and extensive global network. Sumitomo brings a unique set of opportunities to Idoba, comprising over 893 group companies across 66 countries and multiple industries to which Idoba’s products and services have relevance.

A key focus of the shareholder agreements between the parties is a commitment from Sumitomo to provide Idoba access to this network and opportunity set. This is expected to help Idoba substantially accelerate its business plan, strengthen access to technology partners and gain access to a broader global customer base. To facilitate unlocking these substantial commercial synergies, there will be a dedicated Sumitomo full–time secondee embedded within Idoba.