Neptune Marine Services has signed a Letter of Intent (LOI) for the acquisition of Aberdeen-based Submersible Technology Services (STS), a provider of ROV and survey support services to the offshore oil and gas industry.
Neptune proposes to acquire the entire issued capital of STS for US$26.12 million with added conditional consideration based on STS's EBITDA performance for the calendar year 2009. STS is expected to be EPS accretive from date of acquisition.
The cash component of the acquisition price will be funded from the proceeds of the share placement that was announced on June 5.
Approximately 91-95 percent of the acquisition price will be paid in cash, with the balance via the issue of Neptune's ordinary shares to a portion of the vendors who are part of STS management team. The final allocation of cash and shares will be agreed upon entry into a binding sale and purchase agreement.