CGG Closes Acquisition of Thales Seismic Unit

Compagnie Generale de Geophysique reports that its wholly owned subsidiary Sercel finalized the acquisition of the seismic equipment business of Thales Underwater Systems (TUS), as previously announced on December 11, 2003. Principally located in Australia, this business includes the development and manufacturing of surface marine seismic acquisition systems, particularly solid streamers, and seabed marine seismic acquisition systems.

The transaction is valued at 25 million euro, of which 22 million euro were paid in cash at the closing of the deal. TUS's seismic equipment business will be consolidated within the CGG Group from January 1, 2004 and should represent an additional yearly revenue of the order of the transaction value and a level of profitability similar to that of Sercel's present marine equipment activity. A total of 95 employees are joining Sercel, including, in particular, a highly skilled Research & Development Division and a manufacturing unit with a proven industrial expertise.

Thierry LE ROUX, President of Sercel declared: "The arrival of the TUS seismic equipment business within SERCEL brings us 10 years of experience in the development of marine seismic equipment. Furthermore, the technological portfolio of TUS, especially in the seabed equipment domain, complements our know-how in this growing market."