RPS Group plc. (RPS.L) said it has acquired the entire share capital of Knowledge Reservoir Group Inc. or KR, a reservoir engineering and geosciences consulting firm, for a maximum total consideration of US$20.0 million or 12.8 million pounds, all payable in cash.
Consideration paid at completion was US$13.0 million or 8.3 million pounds, including the settlement of debt of $7.7 million or 4.9 million pounds.
Subject to certain operational conditions being met, two further sums of US$4 million or 2.6 million pounds and US$3 million or 1.9 million pounds, will be paid on the first and second anniversaries of the transaction.
Founded in 1999, the KR business operates primarily in the US, but also undertakes projects in many other parts of the world. It is headquartered in Houston, Texas and has offices in London, Oman and Kuala Lumpur to service its international projects.
KR provides reservoir engineering and geoscience consulting services, information databases and project management services to the oil and gas industry. It operates on behalf of industry majors, national oil companies and a wide range of other participants in the sector. KR has 47 full time staff and, like RPS, also utilises specialist associates to execute projects.
RPS noted that 12 of the 13 vendors of the business are remaining with RPS. KR's activities will be merged with the international activities of RPS Energy. The cost of this integration will be incurred in 2013, reducing this year's contribution to Group profit. The process will be largely completed by the end of the year and so the RPS Board expects KR will make a full contribution in 2014, RPS said.
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