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|NDT.net Issue - 2007-11 - NEWS ||NDT.net Issue: 2007-11|
Publication: e-Journal of Nondestructive Testing (NDT) ISSN 1435-4934 (NDT.net Journal)
Guideline announces acquisition of leading ground penetrating radar company Mal? GeoscienceMALÅ GeoScience, Mala, Sweden
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 are achieved.
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.
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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.
Keywords: Electromagnetic Testing (ET) (1345), microwave (135), civil engineering (1026), business (132), acquisition (25),