Geokinetics to acquire unit of Petroleum Geo-Services

Houston-based Geokinetics Inc. will acquire the onshore seismic data acquisition and multi-client data library business of Oslo-based Petroleum Geo-Services in a $210 million cash and stock deal.
The combination will create the second-largest provider of onshore seismic data acquisition services in the world as measured by crew count, the companies said, and the largest prover based in the Western Hemisphere. The combined company will be able to support up to 38 crews and “carry in excess of 207,000 equipment channels and over 150 vibroseis units; and possess in excess of 6,240 square miles of multi-client library data upon completion of current projects in progress.”
The acquisition will bring Geokinetics to new markets, including Alaska and Mexico, as well as certain countries in the Middle East and North Africa. The transaction is expected to close in the first quarter of 2010.
In 2008, PGS Onshore generated $71.9 million in EBITDA (a non-GAAP financial measure defined below) on revenues of $278.8 million. On a pro-forma basis, the new Geokinetics would generate more than $700 million in revenues for 2009.
After closing of the transaction, PGS will become Geokinetics’ second-largest shareholder after Avista Capital Partners.
The company has received a bridge financing commitment from RBC Capital Markets Corporation and in addition, Geokinetics will also explore various capital markets financing transactions prior to closing. RBC Capital Markets Corporation served as Geokinetics’ exclusive financial advisor for this transaction, while Pareto Securities served as advisor to PGS.