GE has announced it will acquire Australian mining equipment and technology company Industrea.
According to Industrea, GE has made an offer of $1.27 per share for 100% of the company's issued shares, a 48% premium which values the Australian firm at around $470 million.
It is believed the deal could be valued at around $700 million.
This could be even higher if it is able to sell its subsidiary Industrea Mining Services, however if the sale of the IMS doesn't go through it will not affect GE's acquisition.
David Beddall, chairman of Industrea, said "this is an attractive offer which is at a significant premium to the current share price".
Managing director of the company, Robin Levison, added that "GE's capital, technical expertise, and global customer relationships are expected to accelerate the growth of Industrea's businesses, building on the company's strong reputation for production and services that enhance the safety and productivity of mining companies".
In December last year, Industrea generated revenues of more than $100 million.
This acquisition will greatly expand GE's presence in the underground mining space.