|STOCKHOLM, SWEDEN, November 1, Swedish software company Guideline Oil Drilling Technology
AB (NGM:GODT) today announced that they have agreed to acquire the Swedish company Malå
Geoscience Förvaltnings AB. Malå Geoscience is a leading provider of radar technology with a focus
on visualization and identification of objects and structures under ground and has product
applications within GPR (ground penetrating radar) and borehole radar. The purpose of the acquisition
is to achieve synergies both in marketing and sales as well as in R&D and to broaden the product and
technology portfolio to further fuel growth and profitability.|
Due to the ownership structure, Guideline acquires shares representing 54% of votes and capital from the
main owners in a first step. Guideline expects to acquire the rest of outstanding shares within short.
Through the acquisition, Guideline creates a new business area alongside seismic drill bit location. Malå
Geoscience has a strong technology and product portfolio and an extensive list of reputable customers,
including e.g. leading corporations in the mining sector as well as the US and British military. Malå
Geoscience, with 42 employees, had a total turn over of SEK 64.5 million in 2006 with an EBIT of MSEK 9.3
million before items affecting comparability items.
The purchase price for all outstanding shares in Malå Geoscience amounts to SEK 50 million in up front cash
payment. In addition, supplementary considerations of maximum SEK 30 million may be paid out if the
forecasted EBIT for 2007 is achieved and additionally SEK 20 million if the forecasted EBIT for 2008 and 2009
There have been several international companies interested in acquiring us, but we selected Guideline
because they provided the most interesting alternative. There are strong synergies both in marketing and
sales, as well as in product and technology development. Together we can ramp up sales and improve
profitability further says Tommy Leijon, CEO of Malå Geoscience.
Malå Geoscience is the global leader within ground penetrating radar. The companys borehole radar is also
interesting and has potential in the oil field service sector and presents a supplement to our own seismic drill
bit location technology. The acquisition of Malå Geoscience fits perfect with our plan to build a leading
company within geo technology with focus on visualization of objects and structures under ground, for
instance localizing a drill bit or detecting other objects. The acquisition also strengthens our overall position
and should enable us to faster adapt and launch the Guideline method in the oil field service sector and in
other segments says Peter Hjorth, CEO of Guideline.
The acquisition is conditioned on the approval in an extra shareholders meeting in Guideline of the acquisition
and a rights issue for financing of the transaction. The intent of the board is to propose a fully guaranteed
rights issue of approximately SEK 75 million. Invitation to the extra shareholders meeting, including all details
of the rights issue will be announced around November 12, 2007 and the extra shareholders meeting is
planned for November 26, 2007. In accordance with this, a prospectus for the rights issue will be presented
around December 4, 2007 and subscription period is planned for December 6-20, 2007.
The annual report of Malå Geoscience Förvaltnings AB for the fiscal year 2006 is attached to this press
release. It should be noted that the report has not been adapted to IFRS.
For more information, please contact:
Peter Hjorth, CEO, Guideline Oil Drilling Technology AB, cell.+46-733 25 75 03 or E-mail: firstname.lastname@example.org
Tommy Leijon, CEO, Malå Geoscience Förvaltnings AB, cell. +46-70 216 48 48 or E-post: email@example.com
Also see www.guidelinetechnology.com and www.malags.se.
Guideline Oil Drilling Technology AB is a Swedish software company with a unique patented method for drill bit
location in real time. The method enables time and cost savings when directional drilling is required. Guideline is
listed on NGM Equity Exchange in Stockholm under the symbol GODT.