Troubled high tech software developer Scientific Software-Intercomp (SSI), based in Denver with offices worldwide, may have found a safe haven. Last month Norwegian company Smedvig signed a letter of intent to acquire the company although its $23 million cash offer was conditional on a number of factors. There is an obvious synergy between Smedvig, an offshore oil services offshoot of the shipping company specializing in well construction services, mobile production solutions and reservoir and technology services worldwide, and SSI, best known for its reservoir management services and its WorkBench product.
liabilities
According to the official statement, Smedvig is to acquire the current liabilities of SSI with SSI satisfying its long term debt liabilities to Lindner Funds, Renaissance Capital Partners and Bank One for approximately $7 million and the SSI preferred stock from the proceeds of the sale. It would also be responsible for the pending settlement of its class action lawsuit which is to be substantially funded from the proceeds of insurance. The whole deal will require shareholder approval. A statement from George Steel, chairman and CEO of SSI, said "Under all the circumstances presently applicable to SSI, the Board of Directors has concluded that its acquisition by Smedvig is in the best interests of shareholders, our customers and our employees. SSI's premier position in reservoir and surface facilities simulation and in exploration and production consultancy will be significantly strengthened and broadened with the reservoir and drilling expertise of Smedvig, providing clients with an unmatched full drilling and reservoir service."
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