The pair have signed a head of agreement with other terms of the investment still to be negotiated.

Krux is based in Calgary, Canada, and develops market leading drilling analytics software, focussing on the collection and analysis of exploration and production drilling data in real time.

Imdex said Krux's software development expertise and proven product offering would enhance Imdex's drilling data origination and analysis capabilities and gave the company the opportunity to accelerate the delivery of its next generation Imdex Mobile software and pathway for its Measure While Drilling offering.

The investment would also support the digitisation of Imdex's Drilling Optimisation business and expand its reach in the North American market.

Imdex and Krux have entered into an exclusivity arrangement with the intent to finalise and complete the transaction in early April 2023.

The company said it would provide more details on the transaction when it released its December half results next month.

In November 2021, Imdex paid $5.5 million for a 30% stake in fellow software company Datarock Holdings.

Shares in Imdex last traded at a seven-month high of A$2.47, giving the company a market capitalisation of $983.1 million.