Montreal-based Cognicase is to acquire Applied Terravision Systems (ATS) in a cash and paper deal. Cognicase is an e-business and wireless technology specialist with 3,800 employees in North America, Europe and Australia. The pre-merger agreement includes a cash payment to ATS shareholders of up to $20 million. ATS provides business process outsourcing (BPO) and application service provider (ASP) to the oil and gas industry.
Tretiak
ATS president and CEO Bob Tretiak said, “ATS is recommending acceptance of the Cognicase offer because of the Company’s proven track record in building product and service partnerships. I believe that our employees, customers and shareholders will all benefit as a result of this transaction since both companies share a very similar vision and have similar business models.”
Brisebois
Cognicase’s chairman, president and CEO Ronald Brisebois added, “This transaction will complement Cognicase’s business process outsourcing and ASP practice. It will create significant revenue synergies resulting from horizontal capability in the Business Process Outsourcing services division as well as open the doors to the southwestern U.S. market.”
InterestWell
ATS technology includes InterestWell, a single-source corporate repository for proprietary well data, and the ATS suite of production management solutions for field data capture include Production Volume Reporting, Gas Facilities Reporting, and a Contracts & Nominations System. These applications provide business solutions for company stakeholders involved with Field Operations, Engineering, Exploitation, Production Accounting, Financial Accounting, Information Technology, Marketing and Corporate Reporting.
Oil and Gas
Cognicase plans to become a significant player in the oil and gas vertical market by leveraging ATS’ e-solutions in the fields of financial, operational, ownership and asset management. In fiscal 2001 ATS lost $2.1 million on revenue of $36.9 million (75% from its US operations). The transaction is subject to the approval of Applied Terravision shareholders voting at a special meeting.
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