GE Energy has offered £289m to acquire UK-based Sondex to further expand its capability and expertise in oil & gas production technologies.
GE Energy’s offer must still be voted on by Sondex shareholders, but the board of the company is recommending its approval.
Hampshire-based Sondex designs and manufactures electro-mechanical downhole tools and surface equipment for optimising the production of hydrocarbons from mature oil and gas fields. Its wireline products are used to monitor reservoir, well and production conditions. while its ‘measurement while drilling’ and ‘logging while drilling’ products assist with directional drilling and formation evaluation.
Its products are sold to oilfield service companies who run well-site operations on behalf of oil and gas production companies.
Sondex, which has US offices in Houston, Oklahoma City, Oklahoma. and Lafayette, Louisiana and locations in eight other countries around the world, has more than 500 employees. If the deal is cemented, the Sondex team would remain in place and be part of a new unit within the optimisation and control business of GE Energy.
Sondex became a publicly listed company on the London Stock Exchange in June 2003. The company has had a period of sustained growth, both internally and through acquisitions. Since going public, the company has acquired Computer Sonic Systems and Bluestar Tools in Calgary, Canada, Geolink in Aberdeen, Scotland, Applied Electronics in Lafayette, Louisiana and Ultima Labs in Houston, Texas.