Magseis Further Consolidates OBN Market through Asset Purchase from Carbon Transition

Source: 3/3/2022, Location: Europe

Magseis Fairfield has entered into an agreement to acquire Carbon Transition’s proprietary node-on-a-rope handling systems. Magseis Fairfield pays an initial USD 0.5 million and enters a profit-sharing model with the seller for surveys executed with this equipment over the coming three years.

“We see an increasingly optimistic outlook for a market recovery for OBN services in 2022 and beyond, and with this acquisition we are further consolidating the market with a minimal upfront payment. In a global environment with significant supply chain delays this asset purchase gives us a time-to-market advantage to capture project opportunities. This acquisition adds to our delivery capability in the mid-water-depth market, and we improve our competitive situation in this market segment. The deal structure limits our financial risk and gives us the ability to deploy additional capacity quickly as the market continues to improve”, says CEO Carel Hooijkaas in Magseis Fairfield.

The transaction is structured based on an earn-out model over a three-year period conditional upon the utilization of the equipment acquired. Earn-out payments are capped at a maximum of USD 12.0 million and have a minimum payment of USD 1.5 million, subject to certain milestones.

The node handling systems Magseis Fairfield acquires are currently installed on two Havila vessels with an additional system onshore and have previously been used for Carbon Transition’s large survey for ONGC in India and other Carbon Transition surveys in the Middle East and North Sea.

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