GE Oil & Gas expands portfolio with Advantec buy
- Business & Finance
GE Oil & Gas has agreed to acquire Norway-based Advantec, a subsea intervention equipment and services provider, to boost its capabilities to offer cost-efficient products and services to customers.
GE Oil & Gas says the purchase is part of its efforts to address the challenges faced by its customers operating the growing number of mature subsea fields, and a broader strategy to expand its position as a provider of subsea production equipment and services solutions for full life-of-field management.
Advantec will operate under the existing name and management team as part of GE Oil & Gas’ Subsea Services & Offshore division, the company said in a press release on Friday.
As such, it will continue to supply products and services directly to existing and new clients, GE Oil & Gas added.
Financial terms of the agreement were not disclosed. The two companies are targeting to complete the transaction by year-end 2015, subject to customary regulatory approvals.
Rod Christie, President and CEO of GE Oil & Gas, Subsea Systems & Drilling said:“With the acquisition of Advantec, we are expanding our comprehensive portfolio of services, so we can provide added value to our customers at a time when the industry requires more effective solutions. The acquisition will enable us to accelerate growth in our subsea services operations by helping us build a leading well intervention equipment supply and rental business alongside accelerating our integrated solutions offering.”
Magnar Aaland, CEO of Advantec said: “We are excited to announce our agreement with GE, which we believe is the right company to help us realize the full potential of our well intervention controls technology to support existing and new clients in the offshore oil and gas industry. GE has the global resources and vast expertise in subsea controls to take our technology to the next level.”
GE added in its press release that, since Advantec was established in 2005, it has grown from 20 to 370 employees with facilities in Norway, the UK, Lithuania, and the US.
“The Advantec acquisition will provide GE Oil & Gas with an integrated global supply chain to address the surging demand for IWOCS and associated technology, complementing GE’s existing subsea production equipment and services portfolio,” GE concluded.