2023-09-18 15:51:53 ET
TGS ( OTCPK:TGSNF ) ( OTCPK:TGSGY ) agreed to acquire seismic rival PGS ( OTCPK:PGEJF ) in an all-stock deal valued at NOK9.3B (~$863M), the two Norwegian companies said Monday, seeking to take advantage of a rebounding market for geophysical data for the offshore energy industry.
TGS ( OTCPK:TGSNF ) ( OTCPK:TGSGY ) is offering 0.06829 of its shares for each PGS share ( OTCPK:PGEJF ) in the deal that will create a combined company with a fully-diluted market cap of ~$2.62B.
The companies estimate the combination will result in annual synergies of more than $50M and help to mitigate supply chain risks.
The merged company will offer customers a library of seismic data from all active offshore basins in the world, and own a fleet of seven 3D data acquisition vessels, the companies said.
More on TGS ASA, PGS ASA
For further details see:
TGS to merge with PGS, creating $2.6B European seismic data firm