2nd Oct 2019 09:28
(Alliance News) - RPS Group PLC on Wednesday said it has completed the purchase of seismic software services consultancy Reservoir Imaging Ltd for GBP4.0 million in cash.
At completion, the vendors received GBP2.7 million, with GBP650,000 payable on each of the first and second anniversaries of completion. The company was majority owned by two directors alongside an external investor who owned a minority stake. On completion, the external investor has exited whilst the two directors remain with the business.
The professional services provider said this transaction strengthens its expertise in the offshore oil & gas sector and enhances its existing marine seismic capabilities.
Edinburgh-based Reservoir Imaging delivers design, survey and quality control management services to the oil & gas sector. Using its proprietary software Reservoir Imaging supports the planning and subsequent safe and efficient execution of offshore marine surveys.
In the year to the end of September 2018, Reservoir Imaging had revenue of GBP1.6 million and adjusted pretax profit of GBP350,000.
"Given the rapidly changing market conditions where data and technology are key business drivers, we see Reservoir Imaging as an intelligent and complementary addition to our international energy segment in which we can see genuine cross selling opportunities going forward," said Chief Executive John Douglas.
RPS Group shares were trading 0.4% lower in London on Wednesday at 144.40 pence each.
By Evelina Grecenko; [email protected]
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