Input/Output (I/O) has bolstered its ‘full wave’ seismic offering with the acquisition of seismic processing house GX Technology Corp. (GXT) in a $150 million cash and paper deal.
I/O president Bob Peebler said, ‘GXT is a ‘crown jewel’ in the world of seismic technology and is recognized as a leading imaging solutions provider. GXT will play a critical role in our strategy to lead the industry into the digital ‘full-wave’ era. GXT will re-orient our company from equipment manufacturing to offering a full range of seismic imaging solutions. GXT complements our VectorSeis sensor technology, but full-wave imaging is about more than just the sensor – it’s also about planning, field execution and advanced processing.’
GXT’s processing offerings include time processing, velocity modeling and pre-stack time and depth migration. GXT also provides value-added services including survey design, project management and quality control. GXT pioneered pre-stack depth migration techniques, originally applied in the Gulf of Mexico.
Mick Lambert, CEO of GXT, added, ‘Our companies share a vision of a high tech seismic company focused on solving our clients’ imaging problems. The combined company will be able to tackle some of the most challenging seismic opportunities in geophysics; full-wave, multi-component processing and 4-D imaging.’
The $150 million purchase price includes the assumption of $4.5 million in debt and the delivery of I/O stock options with a value of approximately $15.5 million. I/O plans to issue $100 million of common stock to finance the deal along with a new loan. In calendar 2003, GXT reported revenues of $49 million. For more on I/O’s ‘full wave’ plans read our interview with Peebler in OITJ Vol. 8 N° 12.
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