In addition to the consideration paid at completion, Neptune will pay the Vendors 60% of Tri-Surv’s EBIT under an earn-out arrangement for the next 3 years. The earn out will be paid 70% in cash and 30% in Neptune ordinary shares. All shares issued as part of the purchase price will be held in voluntary escrow for 12 months.
As part of the acquisition the three vendors of Tri-Surv, Mark Lindsay, Anthony Kerr and Bart Van Der Groen have agreed to remain with the company for a minimum of three years to continue to drive Neptune’s expansion into marine survey and consulting work. Tri-Surv’s 25 full time employees will also remain with the business.
Managing Director of Neptune, Christian Lange said, "We are pleased to have completed this acquisition and welcome the Tri-Surv team to Neptune. Tri-Surv brings a new service line to Neptune and further expands our capabilities in the oil & gas services sector."
"Tri-Surv has an excellent blue chip customer base and their support for the transaction with Neptune has been very encouraging. This is a further endorsement that we are bringing an exceptionally strong business to Neptune, and have now assembled an outstanding suite of services."
"As we have previously stated, the global hydrographic survey market is valued at $3 billion per annum, and with Neptune’s expanding domestic and international footprint, we have the opportunity to build a significant presence in this market."
The Tri-Surv founders stated that, "The Tri-Surv team is looking forward to taking the business to the next stage of its growth as part of Neptune. We currently have a solid pipeline of projects to execute as well as a number of growth opportunities that we are pursuing. Now that we are part of Neptune, we hope to expand our customer relationships both in Australia and internationally."
Funds for the acquisition were raised via the Company’s recent successful institutional placement. The shares issued at completion of the acquisition were issued in accordance with shareholder approval obtained at the Company’s EGM on 29 May 2007.
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