14th Jun 2016 10:15
LONDON (Alliance News) - Geoscience services company Getech Group PLC on Tuesday said it has agreed to acquire London-based Exprodat Consulting Ltd, a software and services provider to the oil and gas industry, for GBP1.8 million in cash and shares.
Getech will pay GBP500,000 in cash, GBP250,000 upfront and the balance in January 2017, plus 4.7 million shares in the company, to acquire Exprodat. Based on the total consideration of GBP1.8 million, that would give the Getech shares a price of about 27.60 pence per share.
Getech shares were flat at 27.00p on Tuesday.
Getech said the deal fits with its strategy of seeing to acquire companies with a "clear commercial fit and synergies" to drive organic growth. It said Exprodat, founded in 2002, has built a substantial client base and, importantly, its staff predominantly comprises geologists by training, given them an understanding of client's scientific needs in addition to data management expertise.
In 2015, Exprodat made a GBP109,000 pretax loss on revenue of GBP3.4 million, hit by the downturn in the oil and gas industry.
"We see a very strong strategic fit and believe that this will enable the enlarged group to provide improved products, services, software and training more broadly across client workflows in the petroleum sector. Exprodat also brings skills which are directly applicable outside the petroleum industry, providing the potential for the group to extend into other markets," said Getech Chairman Stuart Paton.
By Sam Unsted; [email protected]; @SamUAtAlliance
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