Sondex PLC
12 December 2003
Sondex plc
('Sondex' or the 'Company')
Acquisition of Computer Sonics Systems
Sondex, the British oilfield technology company, which floated on the Official
List in June this year, today announces that it has completed the acquisition of
Computer Sonics Systems Inc ("CSS"), a designer and manufacturer of wireline
logging equipment based in Calgary, Canada.
The acquisition of CSS, for which Sondex will pay a maximum of Ca$3.7million
(£1.6 million) funded entirely with cash from the balance sheet, adds a
complimentary product line to Sondex's portfolio and contributes to the
Company's international expansion strategy.
CSS is the market leader in the supply of downhole Cement Bond Logging
equipment, a well inspection process, with revenues of Ca$5.6 million (£2.45
million) and earnings before tax of Ca$730,000 (£319,460) for the financial year
ended 30 September 2003. As at 30 September 2003, CSS had proforma net assets of
Ca$1.711 million (£744,000).
Approximately 80% of CSS's business is currently in North America. However,
since the new product range has a similar target customer base, Sondex expects
to leverage off its own international customer base to expand sales into other
regions. Equally Sondex intends to use CSS's existing office and team of 35
people to support further sales of Sondex products into Canada.
Sondex continues to experience positive trading conditions within its core
businesses and is trading in line with expectations.
Martin Perry, Chief Executive of Sondex, said:
"This acquisition brings Sondex an additional market leading technology which we
can introduce to our current customer base and is an important step in
continuing our international expansion strategy"
12 December 2003
Enquiries
Sondex Tel: 0118 932 6755
Martin Perry (Chief Executive)
College Hill Tel: 020 7457 2020
James Henderson
This information is provided by RNS
The company news service from the London Stock Exchange
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