CGGVeritas buys Fugro seismic data unit
PARIS/AMSTERDAM (Reuters) - CGGVeritas (GEPH.PA) will buy the seismic data division of Dutch engineering company Fugro (FUGRc.AS) for 1.2 billion euros ($1.56 billion) in cash, increasing the number of activities the French service provider to the oil and gas sectors can offer.
The combined group will have pro forma revenues of $4.2 billion and earnings before interest, tax, depreciation and amortisation (EBITDA) of $1.0 billion while the acquisition should add to earnings as of 2013, CGGVeritas showed in a presentation to investors on Monday.
It plans to fund the acquisition with one third equity and two thirds debt while aiming to maintain its credit rating. As soon as possible, CGGVeritas plans to launch a capital increase.
The deal significantly increases CGGVeritas' capabilities in integrated geology and geophysics, reservoir characterization and development, Chief Executive Jean-Georges Malcor said in a statement.
It also strengthens the company's core equipment and acquisition offer "in particular with immediate access in marine to high end vessels at a time of market recovery," he added.
As part of the agreement, both groups have concluded partnerships that should bolster their positions in the exploration market.
CGGVeritas said the deal excluded Fugro's existing Multi-Client library and nodes businesses. ($1 = 0.7699 euros)
(Reporting by Caroline Jacobs and Gilbert Kreijger; Editing by Hans-Juergen Peters and Helen Massy-Beresford)