…international leader in the field of telecommunications systems integration for the oil and gas industry. The acquisition broadens and strengthens RigNet’s communications offerings to the oil and gas industry, allowing the Company to provide its services over the life of the field from drilling through production, both offshore and onshore, around the globe. RigNet will also be leveraging its global footprint to bolster the international reach of Nessco’s systems integration business.
The all-cash purchase price was 29.5 million pounds ($46.4 million) for the business and working capital, including the purchase of Nessco’s 30,000 sq. ft. headquarters facility in Aberdeen, with RigNet paying up to an additional 1.6 million pounds ($2.5 million) through November, 2012, upon satisfaction of certain post-closing events. Assuming such post-closing events are met, the total purchase price would be 31.1 million pounds ($48.9 million), with 26.9 million pounds ($42.3 million) being paid for the business and Nessco’s headquarters facility plus an additional 4.2 million pounds ($6.6 million) being paid for working capital.
The combined business will operate under the RigNet brand, though the systems integration offerings will be co-branded with the Nessco brand for the time being. RigNet’s Aberdeen operations will be moved into Nessco’s facility, with the combined Aberdeen operation to be led by Ian McPherson, currently Managing Director of Nessco. No material reductions in force are anticipated at this time and both companies expect business operations to continue as usual. Nessco’s contracts, both with clients and suppliers, will remain in force.
Established in 1979, Nessco designs, builds, installs and commissions client telecommunications systems encompassing the full spectrum of technologies including fiber optic, digital radio, voice and data networks, closed circuit television, marine communications and satellite networks. With more than120 employees and dedicated contractors, Nessco operates worldwide and has been engaged in major projects in the United Kingdom, Continental Europe, North and South America, Africa, Middle East and Asia Pacific. Nessco was advised by Simmons & Company International Limited.
