A north-east oil and gas service firm has been taken over by a Dutch investment fund.
Paradigm Group announced yesterday that it has acquired GeoKey Limited, based in Aberdeen and Edzell, Angus, in a multimillion-pound deal.
The acquisition is the group’s third since its inception in 2009.
Paradigm now has interests in a number of key segments including drilling, subsea and topside flow assurance, well intervention and reservoir evaluation. The acquisition of GeoKey expands its portfolio to include Tubing Conveyed Perforating (TCP) services.
GeoKey, which was formed in 2007 and employs 11 members of staff, is a leading independent TCP company, which also provides a range of cased hole services, to clients in the UK Continental Shelf.
Paradigm Group currently employs 130 members of staff and the acquisition will see the workforce at GeoKey grow in both locations in Edzell and Aberdeen.
It is anticipated staff numbers at Geokey, which will be renamed Paradigm GeoKey Services, will rise to 25 by the end of next year.
This year Paradigm Group is expected to report revenues of around £20million, and this figure is expected to double over the next two years.
Paradigm chief executive Fraser Innes said: “GeoKey is a big success story with a strong track record for growth and service excellence, and the company is a great strategic fit for the Paradigm Group’s new well intervention technology.
“As the new technologies we have been incubating across the group start to arrive, we expect a significant ramp up in both the revenue and earnings forecast for 2014. Indeed, our current expectations are that revenues will increase to over £30million.
“We have had extremely strong trading in 2013 across all the group companies securing new contracts and growth globally.
“The acquisition of GeoKey will give us a platform for our next generation well intervention services as well as continuing its current planned growth in the core TCP business,” added Mr Innes.
GeoKey boss Paul Lynch added: “Our focus has always been to provide a seamless service for our clients, and merging with Paradigm will see the formation of a great partnership.”