Norwegian seismic player TGS-NOPEC Geophysical Company (TGS) has completed its acquisition of Spectrum, creating a global multi-client geophysical data provider.
TGS first announced its intent to acquire Spectrum on 2 May 2019, said a press release from TGS.
Completion of the acquisition and the merger plan has today been registered with the Norwegian Register of Business Enterprises. As a consequence and following the issuance of 16,076,047 consideration shares to the former shareholders of Spectrum, the new share capital of TGS is NOK 29,680,959.25 divided on 118,723,837 shares each with a nominal value of NOK 0.25.
Commenting on the acquisition, Kristian Johansen, CEO of TGS, said, “We are pleased to have formally closed the transaction to acquire Spectrum. Spectrum's portfolio will enhance TGS' position as a leading multi-client geophysical data provider covering all mature and frontier basins."
He added: "The acquisition fits well with our asset-light business model and provides significant momentum to deliver on our long-term strategy. Further, the combination of TGS and Spectrum has been well received by our clients who will benefit from our comprehensive data library, quality and service.”
Johansen continued, “As we now move into the integration process, I’m pleased to announce that we have seen a great start to the third quarter. The combined company has already secured several larger data sales and pro-forma revenues for Q3 2019 are expected to be in excess of MUSD 250. Our strong performance is mainly due to higher license round activity in regions where TGS and Spectrum have strong data coverage and revenues related to acreage turnover.”