Geophysique and Veritas DGC merge
Create a leading global geophysical services and equipment company
September 5, 2006
Veritas DGC Inc (Veritas) announced today (Tuesday, September 5), that they have entered into a definitive merger agreement with a French company, Compagnie Générale de Géophysique (CGG), for CGG to acquire Veritas for $3.1 billion for a deal to merge the two companies’ seismic businesses. The merger is a part cash, part stock transaction.
Veritas DGC, Inc., headquartered in Houston, Texas, is a leading provider of integrated geophysical information and services to the petroleum industry worldwide, including in Wyoming's Upper Green River Valley. Veritas is listed on New York Stock Exchange under the ticker VTS. (www.veritasdgc.com)
CGG is a global participant in the oilfield services industry, providing a wide range of seismic data acquisition, processing and reservoir services to clients in the oil and gas exploration and production business. It is also a global manufacturer of geophysical equipment through its subsidiary Sercel. CGG is listed on the Eurolist of Euronext Paris SA (ISIN: 0000120164 – NYSE: GGY) and the New York Stock Exchange (under the form of American Depositary Shares, NYSE: GGY). (www.cgg.com)
"The combination of CGG and Veritas will create a strong global pure play seismic company, offering a broad range of seismic services, and geophysical equipment, through Sercel, to the industry across all markets. The combined seismic services will operate the world's leading seismic fleet with 20 vessels, including 14 high capacity 3D vessels, and land crews operating with equivalent capacity in both the Western and Eastern hemispheres. The multi-client services will benefit from two complementary, recent vintage, well positioned seismic data libraries. In data processing and imaging, CGG's and Veritas' respective positions will combine to create the industry reference... With a combined workforce of approximately 7,000 staff operating worldwide, including Sercel, the future group will provide, through continued innovation, the industry benchmark for seismic technology and services to a broad base of customers including independent, international and national oil companies," stated a Veritas news release.