Sondex Receives Acquisition Offer from GE Energy
LONDON, September 3 -- The Board of Directors of Sondex plc (LSE: SDX), a leading supplier of downhole technology to the oil and gas industry, has received an acquisition offer from GE Energy, Sondex Chief Executive Martin Perry announced today.
GE Energy's cash offer is 4.60 pounds Sterling per share ($9.27 US), or
289 million pounds Sterling ($582 million US). The deal must still be voted on by Sondex shareholders and the Board is recommending its approval. Sondex, which has U.S. offices in Houston, Oklahoma City, Okla., and Lafayette, La., and locations in eight other countries around the world, has more than 500 employees. The Sondex team would remain in place and be part of a new unit within the Optimization and Control business of GE Energy.
"The acquisition of Sondex by GE Energy is an exciting move for our company and staff," said Perry. "With GE Energy, we will have greater resources to further develop innovative new technologies and provide an enhanced level of global support to our customers."
Sondex has served the oil and gas industry for more than 30 years, and became a publicly listed company on the London Stock Exchange in June 2003.
The company has had a period of sustained growth, both internally and through acquisitions. Sondex has acquired Computer Sonic Systems and Bluestar Tools in Calgary, Canada; Geolink in Aberdeen, Scotland; Applied Electronics in Lafayette, La.; and Ultima Labs in Houston, since going public.
Besides its U.S. and U.K. offices, Sondex has locations in Venezuela, Canada, Russia, the United Arab Emirates, People's Republic of China, Australia and Malaysia, supplying major oilfield service companies, national oil companies and regional service operators with wireline logging and directional drilling tools and services.
"Sondex will be an important addition to GE Energy's portfolio of businesses, complementing our existing Tensor product line," said Brian Palmer, Vice President of GE Energy's Optimization and Control business. "The company brings to us a broad range of advanced products and technologies, as well as employees with a deep understanding of the customers they serve. We expect the combination to form a substantial growth business for GE going forward."
Sondex designs, manufactures and sells downhole equipment for optimizing the production of hydrocarbons from mature oil and gas fields. Wireline products are used to monitor reservoir, well and production conditions.
Measurement While Drilling (MWD) and Logging While Drilling (LWD) products assist with directional drilling and formation evaluation. Sondex has consistently invested in research and development, resulting in a wide range on innovative and reliable downhole products.
Source: Sondex plc
UK/EUROPE, Martin Perry, Sondex Chief Executive, +44-1252-862206, mperry@sondex.com; USA, Raymond Garcia, +1-512-637-1240; Canada, Lane Roberts, +1-403-291-2973, or +1-403-390-6272
