GE Oil & Gas (NYSE: GE) is acquiring Advantec, a provider of subsea intervention equipment and services. Advantec will operate under the existing name and management team as part of GE Oil & Gas’ Subsea Services & Offshore division. As such, it will continue to supply products and services directly to existing and new clients.
The purchase is part of GE Oil & Gas’ efforts to address the challenges faced by its customers operating the growing number of mature subsea fields, and the company’s broader strategy to expand its position as a provider of subsea production equipment and services solutions for full life-of-field management.
Financial terms of the agreement to acquire the company, headquartered in Stord on the west coast of Norway, were not disclosed. The two companies are targeting to complete the transaction by year-end 2015, subject to customary regulatory approvals.
GE Oil & Gas is currently one of Advantec’s largest customers, utilizing its core capabilities in electro-hydraulic subsea controls equipment, system integration as well as engineering and fabrication to support GE’s services, offshore portfolio and installed base of subsea equipment. For example, Advantec is a supplier of Installation WorkOver Control Systems (IWOCSs), including a fleet of IWOCS rental units. IWOCSs are a key enabler for a wide range of subsea intervention equipment.
Since Advantec was established in 2005, the company has grown from 20 to 370 employees with facilities in Norway, the UK, Lithuania, and the US. The Advantec acquisition will provide GE Oil & Gas with an integrated global supply chain to address the surging demand for IWOCSs and associated technology, complementing GE’s existing subsea production equipment and services portfolio.