Paradigm Geophysical (Nasdaq: PGEO) today announced that it has signed an MOU to acquire the Flagship reservoir interpretation and characterization software division of the French Compagnie Generale de Geophysique (CGG).
The deal is worth $14 million, including 1.5 million Paradigm shares, valued at $10 million as of yesterday's closing, and $4 million in cash. As part of the acquisition, CGG will have an equity stake of 11% of Paradigm.
As part of the agreement, Paradigm will receive ownership of two Flagship division production lines in the fields of oil and gas reservoirs interpretation and characterization. In addition, Paradigm and CGG reached an agreement to develop innovative technological solutions for reservoir interpretation.
Herzliya-based Paradigm specializes in providing geoscientific solutions and services for the oil and gas industry. The company has sales customer support offices in Houston, London, Aberdeen, Calgary, Bahrain, Moscow, Caracas, Buenos Aires, Rio de Janeiro, Perth, Brisbane, Beijing, Jakarta and Singapore. The company was founded in 1993 and issued its shares on Nasdaq in 1998.
Published by Israel's Business Arena on July 25, 2000