TGS will pay $45m initially and up to $35m in performance fees for Stingray Geophysical.
Norway-based seismology services provider TGS-NOPEC Geophysical Company has agreed to buy UK-based Stingray Geophysical for up to $80m.
TGS will pay $45m initially and up to $35m in performance fees.
Founded in March 2006, Stingray has fibre-optic sensing technology for oil and gas reserves developed in the mid-1980s for the UK’s anti-submarine defense applications.
After spinning out from the UK’s Qinetiq defence research unit, Stingray has been backed by a consortium including oil majors Chevron and Statoil’s corporate venturing units and venture capital firms Energy Ventures and Cody Gate Ventures, which is backed by Qinetiq fund manager Coller Capital.
Including the defence investment, more than $80m has been invested in the technology to date but a source close to the deal said "this is a good profitable exit for investors".