Codan has completed a $10 million buyout of Perth firm Minetec, a maker of communications systems used by Australia's largest resources companies.
The buy was formally announced before Christmas and completed yesterday.
Codan paid $6 million upfront for Minetec with the remaining money to be paid only if earn-out targets are reached over the next two-and-a-half years.
The funds have been drawn from an existing debt facility.
Minetec will function as a standalone business unit of Codan.
Some of Minetec's systems are used for asset tracking and collision avoidance in underground environments.
Minetec's customers include Rio Tinto, BHP Billiton, Newcrest Mining, Macarthur Coal and Thiess.
The West Australian reported that Minetec founder Greg Anderson will leave the business, but engineering manager Grant Wilmot and CEO Steve Hannah will stay.
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