Digital Energy Journal- RigNet acquires Nessco for £31m

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RigNet acquires Nessco for £31m

Thursday, August 16, 2012

Oil and gas communications company RigNet Inc of Houston has acquired Nessco Group Holdings Ltd of Aberdeen, also a telecommunications company.

The purchase price was £29.5m ($46.4m) cash for the business and working capital, including Nessco's 30,000 square feet building in Aberdeen, with RigNet paying an additional £1.6m ($2.5m) "upon satisfaction of certain post-closing events," with a total purchase price of £31.1m if these events are met.

The working capital is £4.2m.

"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 Chief Executive Officer and President.

The combined business will operate under the RigNet brand, though the systems integration offerings will be co-branded with the Nessco brand for an interim period.

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.

Nessco Group was founded by Tom Smith, a past co-chair of Oil and Gas UK, an a non executive director of Univation Ltd, the commercial arm of The Robert Gordon University, and chairman of ACSEF (Aberdeen City & Shire Economic Future), the public-private sector partnerships charged with delivering economic development in the North East of Scotland.

Nessco was advised by Simmons & Company International Limited.

Associated Companies
» Nessco Group Holdings Ltd
» RigNet

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