CGGVeritas has acquired Fugro’s geoscience division in a ‘transformative’ deal for the high-end integrated geology and geophysics and reservoir market. The agreement includes a new seabed acquisition joint venture, a commercial agreement for the resale of Fugro’s multi client data and a mutual preferred supplier agreement.
The deal is worth €1.2 billion in cash and was financed with 1/3 equity and 2/3 from debt and from the sale of shares. A subsequent rights issue brought in some €414 million with the issuance of 24 million shares.
The deal is said to accelerate CGGVeritas’ move to the ‘less cyclical, less capital intensive’ geoscience consulting business. The addition of Fugro’s reservoir characterization and modeling software and services will complement the Hampson-Russell unit. Some 2500 Fugro employees will transfer including the legacy Robertson and Jason brands.
The new seabed joint venture will be owned 60% by Fugro and 40% by CGGVeritas with the latter contributing shallow water, ocean bottom cable and permanent reservoir monitoring services. Fugro brings its ocean bottom node business—along with a €225 million cash contribution. More from CGGVeritas.
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