23/01/2012 - 11:41

Imdex JV announces $US100m acquisition

23/01/2012 - 11:41


Save articles for future reference.

Perth-based drilling technology and services firm Imdex’ joint venture with DHS Oil Holdings has acquired US-based oil and gas downhole survey provider Vaughn Energy Services  in a transaction worth $US100 million.

Imdex announced today that its joint venture, DHS Services, had agreed to acquire Texas-based Vaughn, which operates out of 13 locations in the US.

Terms of the transaction include a payment of $US38 million cash at settlement; $US12 million by way of earnout, conditional on reaching certain EBITDA targets; and $US50 million in equity in the merged entity.

The initial cash considerations will be satisfied by Imdex and DHS Oil Holdings majority shareholder, Lime Rock Partners.

Vaughn Resources has developed a suite of specialist oil and gas downhole surveying software and its founders, Gary Vaughn and Nick Wallis, have been in the US oil and gas downhole industry for a combined 65 years.

Imdex managing director Bernie Ridgeway said the acquisition expanded the company’s scope of technologies it could offer its clients.

“The combined business has excellent growth prospects in the US onshore oil and gas market as well as the offshore and onshore international markets,” mMr Ridgeway said in a statement.

“The acquisition supports Imdex’s strategy to grow oil and gas revenue to approximately 30 to 40 per cent of group revenue within the next three to four years.

At 11:40AM WST, Imdex stocks had gained 2 per cent, to trade at $2.09.


Subscription Options