Sondex Acquires Inncor Subsurface Technologies

Sondex has made a cash offer to acquire Innicor a Canadian based designer, manufacturer and provider of downhole completions equipment to the oil & gas industry. The Company also announces that it is proposing to raise approximately £40 million (net of expenses) by way of a Firm Placing and a Placing & Open Offer.


  • Recommended cash offer to acquire all of the outstanding common shares in the capital of Innicor (the 'Offer') a company traded on the Toronto Stock Exchange.
  • The Offer, which has been unanimously recommended by the board of Innicor, is being made on the basis of C$3.75 per Innicor Share, valuing the fully diluted share capital of Innicor at approximately C$72.8 million (£34.7 million) and Sondex has received undertakings to accept the Offer from holders of 51.1% of Innicor Shares.
  • Innicor designs, manufactures and services subsurface equipment in the completion and work-over of oil & gas wells. Innicor is headquartered in Calgary, Alberta, Canada and is listed on the Toronto Stock Exchange (Ticker: TSX: IST).
  • The Directors believe the acquisition of Innicor is in line with Sondex's stated strategy and is expected to bring opportunities for further expansion both organically and via 'bolt on' acquisitions that can be high growth and cash generative.
  • The acquisition of Innicor is expected to be accretive to earnings per share and cashflow of the Enlarged Group in the first full year following completion of the acquisition of Innicor.
  • The proposed acquisition of Innicor is subject to the approval of Sondex Shareholders at the EGM.


  • The Company proposes, subject inter alia to Shareholder approval, to raise approximately £40 million (net of expenses) by the issue of 15,678,571 New Ordinary Shares at 280 pence each by way of a Firm Placing and Placing & Open Offer.
  • It is intended that the net proceeds of the Firm Placing and Placing & Open Offer will be used to finance the acquisition of Innicor and the further growth of the Group. Sondex has also arranged new facilities with the Bank to fund the working capital requirements of the Enlarged Group.

Trading Update:

  • Market conditions have remained favourable as operators of oil & gas fields continue to turn to sophisticated technologies and instruments, such as those supplied by the Group, to optimize production from maturing oil & gas fields.
  • First half revenues continued to benefit from these conditions and are expected to be over 50% higher than the same period last year.
  • Gross margins remain consistent and the Group has continued to invest in research and development.
  • Recent acquisitions of AES and Bluestar are performing well.

Commenting on the acquisition of Innicor, Martin Perry, Chief Executive of Sondex said:
'Innicor is an innovative business with a highly regarded management team. We believe that this is an exceptional fit with Sondex and are delighted to have gained the Innicor Board's recommendation for our offer.

On finalisation of the acquisition, Innicor will form the basis for a new ' completions division' at Sondex adding to the range of products and services offered to our international customer base.

The continued increases in revenues, both from strong organic growth and successful acquisitions, positions Sondex well for its future development.'