Getech goes to ground with £4.3m acquisition
GEOSCIENCE firm Getech has snapped up an oil and gas consultancy.
ERCL, based in Henley-on-Thames has been bought for £4.3m, in a deal made up of £1.75m cash and 2.17m shares.
ERCL is an upstream oil and gas consultancy formed in January 2014 from a merger, currently employing 26 staff and supported by a network of specialist associates who further enhance its capabilities.
Getech will acquire 100% of the capital from the existing shareholders, Huw Edwards, Richard Heath, Steve Lawrence and Chris Irons. Leeds-based Getech’s chief executive Raymond Wolfson believes it will expand the range of services and spectrum of clients Getech can provide services to.
He said: “We see a very strong strategic fit between Getech and ERCL, and believe that this will open up an extended range of opportunities for the enlarged group to work with oil and gas exploration companies and national oil companies.
“The combined group will have a strong asset base, a broader range of skills and products, and the ability to address exploration issues across the full spectrum of clients from the smallest companies to the super-majors and NOCs.
“We have known a number of the ERCL directors and staff for several years and are confident that there is both a cultural fit and a strong ability to work together to grow the combined group.
“We look forward to working with ERCL and the opportunities that this will bring.”
The firm also reported its six-month results, with a growth in revenue from £3.1m to £3.6m.
Getech also tripled pretax profit for the six months to January 2015 on the same period last year, from £233,000 to £707,000.
Stuart Paton, non-executive chairman of Getech Group, said: “Our strategy of seeking major contracts which, individually, are material to Getech has continued to demonstrate success and we have signed two ongoing major contracts with further discussions underway.”
