22nd Jul 2014 08:56
LONDON (Alliance News) - KBC Advanced Technologies PLC said Tuesday that it has acquired FEESA Ltd, a UK-based software and services provider to the upstream oil and gas industry, in a cash and shares deal worth GBP11.2 million.
Comprised of GBP10 million in cash and one million KBC shares, the acquisition is the next next in KBC's growth strategy into the upstream oil and gas industry, said the company.
KBC provides consultancy and software services to the global hydrocarbon processing industry. The company said that it will now be able to offer profit improvement and business transformation programmes, underpinned by technology, across the full hydrocarbon value chain. FEESA's Maximus software, when integrated with KBC's Multiflash and Petro-SIM Production technologies, completes the KBC software simulation suite from reservoir through to refinery, it said.
The acquisition has been funded from KBC's recent equity placing and is expected to be earnings enhancing for the group in the first full year of ownership.
In its financial year to March 31, 2014 FEESA reported a profit before tax of GBP0.5 million on revenues of GBP2.3 million.
Following completion of the acquisition, FEESA's founding shareholders, Martin Watson and Neil Hawkes will hold senior positions within the enlarged group, focusing on KBC's upstream consulting and technology revenue as well as further establishing Maximus, Multiflash and Petro-SIM as standards for the industry, said the company.
"This strategic acquisition enables KBC to span the entire hydrocarbon value chain with technical and business transformation consulting underpinned by deep software IP. We expect the software business in particular to benefit from the synergies of an enhanced value suite applicable to the upstream sector," said Executive Chairman of KBC Ian Godden.
Shares in KBC Advanced Technologies were Tuesday trading marginally higher, up 0.81% at 124.00 pence per share.
By Alice Attwood; [email protected]; @AliceAtAlliance
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