Magseis in $233M Fairfield seismic tech swoop
- Business & Finance
Norwegian seismic services company Magseis will acquire Fairfield’s seismic technology business in a deal valued $233 million.
Based in Houston, Fairfield is specializing in Ocean Bottom Node surveys, and it has approximately 230 full-time employees and 250 contracted personnel.
The transaction entails Magseis acquiring data acquisition, nodal and system sale & rental activities including all shares in Fairfield’s wholly owned UK subsidiary WGP Group.
Magseis said the transaction would comprise a combination of cash ($165 million), Magseis shares, warrants and an earn-out payment, with the agreed purchase price based on an enterprise value of approximately USD 233 million. Included in the deal are earn-out payments related to the Al Shaheen project in Qatar where Fairfield will receive 40% of the net cash generated from the project.
According to Magseis, the transaction is transformational as it will combine two complementary businesses and create “leading businesses to create a leading provider of marine seismic solutions, including Ocean Bottom Seismic (“OBS”)”
“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 capitalize on exciting growth opportunities”, says Jan Pihl Grimnes, Chairman of the Board of Directors of Magseis.
Byron Sugahara, Chairman of Fairfield-Maxwell Ltd, the owner of Fairfield, says: ”We are excited to become Magseis Fairfield’s largest shareholder given our positive outlook on the seismic services industry and confidence in the combined management team. We are also pleased that the transaction will provide Fairfield-Maxwell additional capital for potential reinvestment in Fairfield Geotechnologies’ remaining data licensing and data processing business.”
According to a statement on Wednesday, 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 CEO of Fairfield, Charles W. (“Chuck”) Davison, is proposed to become new Chairman of the Board of Directors of Magseis upon completion of the Transaction. The transaction is expected to be completed by the end of the fourth quarter of 2018.