Vance Street Capital LLC (“Vance Street”) is pleased to announce it has signed a binding Sale and Purchase Agreement to sell Terra Insights (“Terra”) to Orica (ASX: ORI), one of the world’s premier mining and infrastructure providers, for CAD $505 million. Headquartered in Vancouver, British Columbia, Terra Insights is one of the leading global end-to-end sensor and data delivery technology platforms, providing geotechnical, structural and geospatial monitoring of critical assets in mining and infrastructure. The transaction is anticipated to close in the first half of 2024.
Vance Street invested in Terra through its second fund (“Vance Street Fund II”) in 2017 as part of an ongoing industrial technology thesis around connected critical asset monitoring technology. Under Vance Street’s ownership, Terra Insights has achieved double digit organic growth since 2017 and more than tripled revenue and while expanding margins. Growth was driven by the acceleration of new product development around connectivity and data systems, commercial expansion into new customers, geographies and monitoring technologies and executing complementary acquisitions to expand the integrated solutions to the Terra Insights customer base. This transaction marks the fifth realization for Vance Street Fund II.
“Terra exemplifies Vance Street’s strategy of partnering with best-in-class highly engineered solutions providers and leveraging our operating partner network to execute on the Vance Street Value Creation Playbook,” said Brian Martin, Managing Partner at Vance Street. “CEO Mark Price and the Terra team have done an exceptional job of executing on the strategy, taking niche hardware solutions and transforming Terra into one of the leading innovative sensors and data delivery technology providers for geotechnical, structural and geospatial monitoring in mining and infrastructure. We want to thank the Terra team for their hard work and great partnership over the past six years.”
“Orica is an ideal partner for Terra Insights to continue the business’ exciting growth and technology development trajectory. Given the longstanding collaboration and relationship between the two organizations, the future is bright for the solutions they will collectively provide to the mining and infrastructure safety markets,” added Steve Sandbo, Partner at Vance Street.
Mark Price, CEO of Terra Insights, said, “Vance Street has been a true partner to build this exciting platform. Their strategic vision, tremendous support and diligent oversight has been integral to the platform development. The growth culture and a genuine interest in both the development and wellbeing of everyone in their organizations make them a special team.”
Lazard is acting as financial advisor and O’Melveny & Myers and Davies Ward Phillips and Vineberg are acting as legal advisors to Terra Insights and Vance Street Capital. J.P. Morgan Securities Australia Limited is acting as financial advisor and Gilbert+Tobin is acting as legal advisor to Orica on the Acquisition.
