GGS and Spectrum Join Forces
Spectrum has completed an agreement with Global Geo Services of Norway to combine business interests. The transaction, which was signed in Oslo on December 29th, has been managed by Pareto Private Equity and Enskilda Securities. GGS, a company listed on the Oslo Stock Exchange, has compiled a prospectus describing in more detail the transaction through which GGS acquired Spectrum.
Spectrum is an established UK-based geophysical company with a number of international offices in different continents. Spectrum's core activity is high quality seismic data processing coupled with a substantial multi-client seismic data library. Spectrum's seismic data library is of similar magnitude to that of GGS consisting of 143,000 line km of 2D data and 700 square km of 3D data.
GGS is a Norwegian geophysical company which specializes in multi-client seismic surveys. During 2005 GGS has alone or with partners acquired multi-client data West of Florida, offshore East Timor (Indonesia), offshore Syria and also in the JPDA between East Timor and Australia. GGS has previously acquired the largest multi-client library available in the Middle East.
Len Reece, Managing Director of Spectrum comments: 'Spectrum has over the past 20 years established a highly successful business strategy, whereby the development and licensing of multi-client seismic surveys is closely integrated with data processing services. I see this synergy continuing in the GGS/Spectrum environment. The complementary distribution of the regional operations of the two companies is almost perfect, providing the newly merged Group with a strong presence in all key exploration regions. Both companies have established excellent relationships with a large number of international customers. The combination of GGS and Spectrum will enhance the Group's business development and marketing facilities, while at the same time providing significant benefits to our client base.'
Trond Christoffersen, CEO of GGS states: 'I am confident that we are creating a stronger geophysical unit of higher value to our customers through the combination of Spectrum and GGS. This follows the acquisition of CSPL in Singapore and the formation earlier in 2005 of GeoBridge a geophysical company jointly owned by BGP of China and GGS.'
Morten Andersen, Chairman of the Board of GGS states: 'I am very pleased to see our negotiations with the owners of Spectrum being successfully concluded. We have a strategy to build a strong geophysical company with presence in all the key markets and a steady stream of revenues to support growth. The Spectrum acquisition is a milestone. It will mark the start of a new period to the benefit of the company, its shareholders and our clients who depend upon the highly skilled and motivated staff of the two companies.
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Company: Global Geo Services more info
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