GE Oil & Gas agreed Friday to acquire Advantec, a provider of subsea intervention equipment and services, for an undisclosed sum.
Norway-based Advantec will operate under its existing name and management team as part of GE Oil & Gas’ Subsea Services & Offshore division.
The firm will continue to supply products and services directly to existing and new clients, GE said.
The financial terms of the agreement were not disclosed.
The two companies are targeting to complete the transaction by the end of 2015, subject to customary regulatory approvals.
“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 leading provider of subsea production equipment and services solutions for full life-of-field management,” GE said.
GE Oil & Gas said it plans to use the acquisition to expand its presence in the subsea well intervention sector.
Advantec is a leading supplier of Installation WorkOver Control Systems (IWOCS), including a fleet of IWOCS rental units, a key enabler for a wide range of subsea intervention equipment.
GE said the acquisition will provide it with an integrated global supply chain to address surging demand for IWOCS and associated technology.
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.
Since Advantec was established in 2005, the company has grown from 20 to 370 employees with facilities in Norway, the United Kingdom, Lithuania and the United States.
“The acquisition will enable us to accelerate growth in our subsea services operations by helping us build a leading well intervention equipment supply and rental business alongside accelerating our integrated solutions offering,” President and CEO of GE Oil & Gas, Subsea Systems & Drilling Rod Christie said.