CGGVeritas Announces Acquisition Of Fugro’s Geoscience Division And The Creation Of Strategic Partnerships
CGGVeritas (Paris:GA) (NYSE:CGV) announced today that it has entered into an agreement with Fugro to acquire Fugro’s Geoscience Division, excluding the existing Multi-Client library and nodes businesses.
With this transformative agreement, CGGVeritas will become a fully integrated Geoscience company establishing a leading position in the fast growing high-end integrated geology and geophysics and reservoir market. The transaction will also strengthen and extend its existing equipment and acquisition businesses, in particular with the addition of four high-end 3D vessels.
The agreement also includes strategic partnerships which will benefit from the leading positions both parties have in their respective markets:
- The creation of a Seabed Joint-Venture, a focused global leader in the rapidly growing Seabed acquisition market, which will be 60%-owned by Fugro after payment of €225 million to CGGVeritas.
- A commercial agreement for CGGVeritas to sell Fugro’s existing Multi-Client data, which remains owned by Fugro.
- A global strategic technical and commercial mutual preferred supplier agreement.
- A major step forward in field development and in reservoir capabilities, with strong recognized brands and immediate access to new clients
- An accelerated move to a less cyclical business and low capital intensive geoscience consulting services
- The addition of high-tech reservoir characterization and modeling software and services, complementing the Hampson-Russell business
- Provision of high-end integrated solutions from exploration to production
- Immediate access to high-end Marine vessels at a time of market recovery. A sound alternative to new builds while keeping industry capacity constant
- Creation with our partner Fugro of a global leader in the rapidly growing Seabed Acquisition services market
- An increased Multi-Client footprint through access to new libraries and reinforced marketing teams
- A complementary position in equipment with the De Regt products
- The addition of high skilled personnel where expertise is a key success factor
- The addition of acquisition services businesses: Airborne, Marine EM, Marine Magnetics & Gravity
- Scale savings and incremental productivity of the global fleet
- Technology and commercial leverage across the geosciences
- Additional sales expected from the preferred supplier agreement
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV