IDS subsidiary to acquire SIAL Geosciences
IDS Intelligent Detection Systems Inc ISD
Shares issued 22,080,901 Jan 12 close $5.25
Thu 13 Jan 2000 News Release
Mr. Peter McIntyre reports
IDS Intelligent Detection Systems' subsidiary company, Scintrex Limited,
has entered into an agreement to acquire SIAL Geosciences Inc.
SIAL Geosciences is an innovative geophysical services company specializing
in airborne, land and marine surveys for civil, environmental, mining and
petroleum exploration, and engineering. Based in Quebec, SIAL operates from
offices in Canada, Argentina, Ecuador and Tunisia. The company has more
than 20 years of experience in geophysical surveying and has flown over 2.5
million line-kilometres of airborne geophysical surveys.
"SIAL Geosciences regularly conducts world-scale projects that cover all
aspects of airborne, ground and offshore surveying. They provide end-to-end
solutions -- from data gathering to comprehensive processing and
interpretation capabilities," said Mariusz Rybak, chairman and chief
executive officer of IDS. "Their unique combination of experience,
innovations, and comprehensive solutions makes SIAL Geosciences a
compelling value proposition for exploration companies around the world."
SIAL Geosciences currently has 16 geophysicists and 15 highly specialized
technicians operating from four offices. Revenue has averaged $5.8-million
annually over the last three years, generating average annual pretax
earnings of about $600,000 per year over the same period.
"The SIAL Geosciences agreement and our recently announced agreements with
Micro-g Solutions Inc. and Val d'Or Sagax are part of IDS's strategy to
build critical mass in our geophysical business and to gain economies of
scale," said Dr. Rybak. "The pressures of an extended downturn in the
geophysical and exploration markets have driven extensive consolidation in
the sector. Leveraging the marketing and distribution strengths of Scintrex
enables IDS to participate in this consolidating trend through select
acquisitions and to capture the synergies that are generated."
This acquisition creates a unified, simplified and extensive global network
of marketing, sales, and distribution channels. Research and development
will also profit from the economies of scale generated by the new
structure. The acquisition exemplifies the strategy of consolidation
intended to heighten IDS's commanding market presence in this sector.
The proposed acquisition of SIAL Geosciences Inc., is subject to various
conditions, including the execution of definitive agreements, due diligence
and regulatory approvals.
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