Reach Subsea, a subsea services company, said Thursday it had agreed to buy the offshore survey services firm iSurvey in a transaction valued NOK 135 million ($15,1 million). Separately, it was announced that Wilhelmsen had acquired a 21% stake in Reach Subsea.
Established in 2004, Norway-based iSURVEY offers seabed survey/IRM services, offshore cable installations, rig moves, and mooring, and marine construction. iSURVEY’s customers are global oil & gas, renewable energy and telecommunications companies.
Reach will acquire iSURVEY Holdings AS’ 100% interests in iSURVEY for NOK 135 million on a neutral working capital and debt basis. iSURVEY Holding AS is owned 72% by Norvestor VI, LP’s, a fund managed by Norvestor Investment Management S.a.r.l., while the company’s management team and current and former employees hold the remaining 28%.
The transaction will be settled through the issuance of 33.8 million shares in Reach, valued at NOK 3.25 per share, and NOK 25 million in cash.
The consideration shares issued to iSURVEY Holding AS will be subject to lock-up until December 10, 2022. Following completion of the transaction, and completion of the NOK 150 million private placement towards Wilhelmsen New Energy AS, iSURVEY Holding AS will become a 15% shareholder in Reach. The transaction will be presented for approval at an extraordinary general meeting in Reach expected to be held on or about 14 March 2022. Subject to approval and fulfilment of other customary closing conditions, the transaction is expected to close in the first quarter of 2022.
Jostein Alendal, CEO of Reach Subsea said: "With the acquisition of ISURVEY, we are developing Reach Subsea into a larger, more robust, fully integrated company, with strengthened in-house data management and data processing capabilities. This will enable us to take on larger subsea projects on a global scale and accelerate our expansion into emerging new industry verticals, such as offshore wind,” said “Through our long-standing relationship with iSURVEY, we know the two organizations are a good cultural fit, as well as complementing each other’s technology offerings and customer portfolios.”