Getech makes US acquisition
YORKSHIRE-BASED GETECH, which specialises in mapping areas targeted for oil exploration by industry giants such as Shell, BP and ExxonMobil, has acquired an American company which will see it expand its presence in the US market.
The company has acquired Lisle – based in Denver, Colorado – which owns a substantial proprietary gravity database for the USA.
Lisle also holds magnetic and magneto-telluric data for the USA and currently markets and licenses its data in the country in a similar way to how Getech licenses data internationally.
Getech – which was the first Leeds University spin-out firm to float on the Alternative Investment Market and has the world’s largest commercial library of gravity and magnetic exploration data – said the acquisition was an “excellent fit”.
To support the purchase Getech has announced a placing of 1.53m ordinary shares at a price of 26p.
The placing, which was oversubscribed, is expected to raise £400,000 .
Getech will make an initial consideration of £1.2m, £1m of which will be paid upon completion and £200,000 in March, with a deferred element related to net sales over the next three years
The present owner, George Lisle, will act as a consultant to Getech for the first year on a part time basis for a fee of £75,000. Subsequently, Getech will pay a retainer of £16,900 until 2014 to Mr Lisle.
In the year ended December 31, 2007, Lisle reported gross revenue of £1.1m and pre-tax profits of £372,000 after owner’s drawings.
Getech’s executive chairman Derek Fairhead said: “Lisle Gravity was founded in 1971 and has established its reputation by compiling and marketing what is arguably the largest and most comprehensive commercially available gravity database in the US. This acquisition maintains Getech’s position as a major global provider of such data and is an excellent fit with our core business.
“The acquisition provides a new business opportunity to expand our marketing and integrated interpretation services into what is an already dynamic US domestic market.”
The Leeds office of WH Ireland acted for Getech on the placing.
