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RigNet Inc. has acquired Nessco Group Holdings Ltd. 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 $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 $2.5 million through Nov. 2012 upon satisfaction of certain post-closing events. Assuming such post-closing events are met, the total purchase price would be $48.9 million.
“Our customers will have immediate access to a broader range of integrated communications solutions as a result of this acquisition,” said Mark Slaughter, RigNet’s CEO and president.
“Additionally, RigNet will now have the ability to support customers across the entire oil and gas value chain. I am also pleased that our debt refinancing for this transaction preserves our financial flexibility moving forward. This acquisition greatly expands the talent base of the RigNet family and underscores our commitment to investors and customers to grow and expand our business, both organically and through strategic acquisitions,” Slaughter continued.
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.