North-east oil and gas telecommunications specialist Nessco Group was sold yesterday in a deal worth up to £31.1million.
The Westhill company has been acquired by RigNet, a Houston-based provider of managed remote-communication solutions to the oil and gas industry.
The biggest shareholder in Nessco was Maven Capital Partners with 51%, while chairman Tom Smith’s stake is worth more than £5million. Other senior bosses also had smaller shares in the firm.
Nessco is described as an international leader in telecoms system integration for the oil and gas industry. It has 140 employees and contractors – all at Westhill – and annual turnover exceeding £30million.
RigNet has 19 workers in Aberdeen who will all move into the Nessco headquarters. After a short transition, RigNet will be the brand name for the combined business. The north-east operation will be led by Nessco managing director Ian McPherson, who becomes general manager.
He said: “The acquisition is great news for Scotland and demonstrates a real commitment from an international company to have a centre of excellence for oil and gas telecommunications here in Aberdeen. We are committed to our clients and contracts in the North Sea and the deal significantly increases the resources available so that we can continue to strengthen our service offering to local and international markets.
“The plan is to continue to expand and invest in top-calibre technical staff to provide the high level of service that our customers expect.”
RigNet was founded in 2000 by Norwegian entrepreneurs and now has 243 workers worldwide and annual turnover of more than £70million.
Mark Slaughter, RigNet’s chief executive, said: “Our customers will have immediate access to a broader range of integrated communications solutions as a result of this acquisition.”
Maven partner Jock Gardiner said: “Nessco has been an excellent investment for Maven since 2008 with the company doubling in size, workforce and profitability. Nessco has a great management team which Maven has enjoyed working with over the last four years and we look forward to the business prospering as part of the RigNet family.”
Corporate-finance adviser to the energy industry Simmons and Company International brokered the sale. Nick Dalgarno, managing director for Simmons in Aberdeen, said: “The transaction underlines the contacts and expertise we can bring and cements our leading position in energy dealmaking.”