CGGVeritas buying Fugro’s geoscience division for $1.55B
by The Associated Press
Transaction does not include existing multi-client library and nodes businesses
NEW YORK—CGGVeritas, which provides equipment and services to oil and gas companies, is buying Fugro’s geoscience unit for $1.55-billion.
The French company said the deal will expand its capabilities in activities ranging from exploration through production.
It anticipates the acquisition will add to its results next year.
Among the businesses being acquired from The Netherlands-based Fugro are operations used in seismic exploration and seven ships used to operate in challenging offshore areas.
The transaction does not include the existing multi-client library and nodes businesses.
CGGVeritas said it expects to finance the deal with one-third equity and two-thirds from debt and proceeds from its Seabed joint venture share.
The Seabed joint venture is with Fugro, which will own 60 per cent of the joint venture once it makes a $290.2-million payment to CGGVeritas.
CGGVeritas says it expects to finance the debt with a bridge loan.
About 2,500 Fugro workers will become a part of CGGVeritas as part of the transaction.
Approximately 230 CGGVeritas employees will join the Seabed joint venture.
Both companies’ boards have approved the buyout, which is expected to close before the end of the year.
The deal is subject to antitrust clearances and consultations with work councils.