Seismic major CGGVeritas has struck a deal with Fugro to acquire its geoscience business for $1.54billion in cash, but excluding the existing multi-client library and nodes businesses.
Some 2,500 personnel scattered around the globe will be transferred from Fugro to CGGVeritas. This is understood to include employees at geosciences satellites located in Aberdeen.
As a result, CGGVeritas will come of age as a fully integrated geoscience company with a key position in the integrated geology and geophysics and reservoir market.
The deal will also strengthen and extend its existing equipment and acquisition businesses, in particular with the addition of four high-end 3D vessels.
CGGVeritas said too that the agreement sees the creation of a Seabed Joint Venture focused in the growing seabed acquisition market, which will be 60% owned by Fugro after payment of around $290million to CGGVeritas.
Around 230 CGGVeritas staff will be transferred into the Seabed JV.
A commercial agreement has also been reached whereby CGGVeritas will sell Fugro’s existing multi-client data, which remains owned by Fugro. A global strategic technical and commercial mutual preferred supplier agreement has also been reached.
The $1.54billion transaction is to be financed with 1/3 of equity and 2/3 from debt and Seabed JV share proceeds.
The deal has been approved by the boards of both CGGVeritas and Fugro, with completion subject to mandatory anti-trust clearances, work councils consultation processes, and other customary conditions. Deal close is targeted before year-end.