Geoforce, Inc. (www.geoforce.com), an international provider of asset tracking solutions for the oil and gas industry, announced it has received a significant growth equity investment from Houston Ventures and Palmetto Partners (“Palmetto”). Following the transaction, which closed on August 28, 2013, Houston Ventures and Palmetto became minority shareholders in Geoforce. Both firms also received representation on Geoforce’s Board of Directors.
The capital will support Geoforce’s continued growth, which has averaged nearly 100% per year over the past five years. Geoforce’s first international subsidiary, Geoforce do Brasil, was launched earlier in 2013, and is already a leading force in the offshore Brazil market. The company plans to significantly expand its international operations to serve the global oil and gas industry, with an immediate focus on Asia-Pacific and Europe, and other locations to follow. A portion of the funds will also be used to enlarge Geoforce’s product development team – as well as grow its multi-national sales, marketing and customer support efforts.
“Throughout our history, we have regularly been approached by prospective investment partners who recognized the potential of Geoforce’s market and the strength of our business model. However, we never felt the need to take institutional equity investments, since we funded our previous growth organically,” said Vincent Hsieh, CFO of Geoforce. “That changed when we began talking to Houston Ventures and Palmetto.”
“In Houston Ventures we have a partner that has a successful track record with oil and gas technology companies and which shares our vision to make field operations more efficient, more transparent, and more profitable. Together we understand the difficulties our customers face in managing large fleets of owned and rental field equipment,” said James MacLean, III, President and CEO of Geoforce. “This partnership fuels our growth both in the U.S. and internationally, and builds on our reputation as the premier provider of oilfield equipment tracking solutions.”
"The key to success for any technology company serving the energy industry is an understanding that these customers have a remarkably different set of vendor expectations. What counts as proper execution in oil and gas is simply a different standard. We believe Geoforce understands this based on the profile of their customers and what that says about the company and management,” said Charles L. (Chip) Davis, Managing Partner of Houston Ventures. “Geoforce is a perfect fit with our investment strategy of applying technology to solve high level operating problems in the energy industry."