Information on the target
Sandvik has signed an agreement to acquire ThoroughTec Simulation, a prominent provider of equipment simulators and simulator-based training solutions for the global mining industry, based in Durban, South Africa. ThoroughTec specializes in developing OEM-agnostic training simulators and offers a comprehensive training management system designed to enhance productivity and operator safety while reducing equipment maintenance costs. With a workforce of over 200 employees, ThoroughTec has established a robust sales and support network that caters to the needs of its clients.
In the fiscal year 2025, ThoroughTec generated revenues of approximately SEK 170 million, demonstrating a strong EBITA margin. The acquisition will be reported under Sandvik's Parts and Services division within its Mining business area, further integrating ThoroughTec's innovative training solutions into Sandvik's existing offerings.
Industry overview in the target’s specific country
The mining industry in South Africa is a critical sector, contributing significantly to the country's economy. With a rich history of mineral extraction, South Africa is home to some of the world's largest mining operations, including gold, platinum, and diamond mines. The industry is characterized by a strong emphasis on safety and efficiency, driven by the need to optimize operations and minimize environmental impact. As a result, there is a growing demand for advanced training solutions that can enhance operator skills and improve overall productivity.
In recent years, the South African mining sector has faced challenges, including fluctuating commodity prices and regulatory changes. However, the push for modernization and technological advancements has opened new avenues for growth. Companies are increasingly investing in digital solutions and training programs to ensure their workforce is equipped with the necessary skills to operate advanced machinery safely and efficiently.
Furthermore, the integration of simulation-based training into mining operations is becoming a standard practice, as it allows for a risk-free environment where operators can hone their skills. This trend is expected to continue, driven by the industry's commitment to improving safety standards and operational efficiency. As a result, ThoroughTec's offerings are well-positioned to meet the evolving needs of the South African mining sector.
The rationale behind the deal The acquisition of ThoroughTec Simulation aligns with Sandvik's strategic objectives to enhance its aftermarket offerings and provide comprehensive solutions to its mining customers. By integrating ThoroughTec's advanced training sim…