Norwegian geophysical company Magseis has reached a $233m agreement to acquire Fairfield Geotechnologies’ Seismic Technologies business comprising data acquisition, and nodal and system sale and rental activities.
The deal includes the acquisition of all shares in Fairfield’s 100%-owned UK subsidiary WGP Group.
Under the terms of the agreement, the total consideration will comprise cash payment of $165m, the issuance of 33.5 million Magseis shares, and an earn-out payment related to the Al Shaheen project in Qatar, amounting to 40% of the net cash generated from the project.
Fairfield will also -be entitled to receive 18.25 million warrants for shares in Magseis to be exercisable within five years from the date of completion of the transaction.
The acquisition is expected to result in the creation of a provider of marine seismic solutions, including ocean bottom seismic (OBS), with significant global footprint and client base.
Magseis board of directors chairman Jan Pihl Grimnes said: “This transformational transaction enables Magseis to take pole position in the development of the marine seismic industry with critical mass, leading technology, modern crews and financial capabilities to capitalise on exciting growth opportunities.”
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Fairfield Seismic Technologies provides marine ocean bottom nodal (OBN) seismic systems. It owns a portfolio of intellectual property for OBS, land and permanent reservoir monitoring solutions.
Magseis CEO Per Christian Grytnes said: “Magseis and Fairfield Seismic Technologies combined will have the industry’s largest nodal inventory and be positioned for global operations with substantial scale advantages.
“The combined entity will have an excellent technology platform providing optimal ability to meet all client requirements, regardless of geography, water depth and acquisition methodology.”
Once the acquisition is completed, the business will be called Magseis Fairfield.
Fairfield Geotechnologies will retain its data licensing and data processing business.
The company will also have access to Magseis Fairfield’s equipment and services through a five-year preferred supplier agreement.
Subject to anti-trust approval and other conditions, the transaction is anticipated to be closed by the end of the fourth quarter of this year.