TGS-NOPEC Geophysical Company announced the acquisition of Calgary-based Arcis Seismic Solutions Corp. The total equity value is approximately $51 million, reflecting an enterprise value of $72 million, based on net debt at the date of acquisition.
Arcis is a privately owned geophysical company founded in 1996 with a head office located in Calgary, Alberta, Canada and a strong regional business development presence in Latin America (Colombia) and the Middle East/North Africa (Cyprus). Arcis has built one of the most modern 3D seismic data libraries in the Western Canadian Sedimentary Basin. The 3D multi-client library consists of 4,899 square miles (12,689 square kilometers) with core activity in many prolific hydrocarbon trends in Alberta, British Columbia and Saskatchewan (including Bakken, Horn River, Montney and Duvernay). Arcis has complemented its data library through offering global seismic solutions that include seismic data processing (using its APX processing platform), reservoir analysis, geoconsultancy and project management. Arcis employs over 80 professional and technical personnel who have a broad range of skills, expertise and experience. In 2010 and 2011, Arcis generated average annual revenues of CAD 50 million.
As a wholly-owned subsidiary of TGS, Arcis will continue to invest in multi-client projects in Canada, provide proprietary imaging services to external customers worldwide and will play a vital role in the processing of TGS' own multi-client surveys. The Arcis acquisition will allow TGS to grow into the onshore multi-client and imaging business in Canada and other markets served by Arcis. This acquisition further strengthens TGS' ability to meet its recently revised guided revenue and investment targets for 2012. The acquisition will be consolidated into TGS accounts as of 1 July 2012.
Robert Hobbs, Chief Executive Officer of TGS, views the Arcis acquisition as an excellent opportunity to expand the core TGS business into a new geographic market. "The acquisition of Arcis brings TGS into the very important Canadian seismic market and again increases TGS' processing capabilities and research and development efforts. The common focus on multi-client data and imaging services, as well as the strong alignment of brand, vision and core values between Arcis and TGS, makes for a powerful combination."
Brad Torry, President & CEO of Arcis added, "We are excited about the synergies and opportunities the business combination brings to our clients, our staff and the geophysical community. The integrated business models of Arcis and TGS allow both organizations to meet their expansion goals, adds immediate value and provides an avenue for continued growth. We are excited to join the TGS family and expand our global presence."
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