Oilfield services firm Archer has acquired 65% share of Norwegian energy services company Vertical Service, strengthening its offshore energy engineering portfolio.
The consideration for the shares is a combination of $2.38 million (NOK 25 million) in cash and the contribution of Archer’s offshore drilling facilities construction business in Norway.
According to Archer, the acquisition fits well with its strategy for smaller accretive and synergetic bolt acquisitions, which estimates a payback of less than 3 years.
The remaining 35% of Vertikal will be owned by existing management and key employees.
Vertikal has 125 employees and provides inspection, installation, and maintenance services to energy customers in the MMO, drilling, offshore and onshore wind, and hydro segments.
The company performs work using advanced industrial rope access techniques on complex structures such as offshore and onshore wind turbines, hydropower stations, and offshore oil and gas installations.
“We are excited to announce this agreement. Vertikal's business aligns well with Archer's core oil and gas capabilities while opening avenues for growth in renewable sectors such as wind and hydropower. We anticipate significant long-term synergies and growth potential from the acquisition.
“I look forward to collaborating with the Vertikal team to further develop the business and extend a warm welcome to all employees joining the Archer group,” said Dag Skindlo, CEO of Archer.
“Through this strategic alliance, Vertikal Service will secure long-term contracts within the oil and gas segment and together with the Archer team, create a strong platform for further growth throughout our value chain. We are excited to join forces and continue our development of renewable business within hydro power and turbine services,” added Åsmund Vaage of Vertikal Service.