Archer Limited: Archer acquires 65% of Vertikal Services AS and strengthens its engineering services portfolio
Hamilton, Bermuda (March 15, 2024)
Vertikal Service AS (“Vertikal”) is a Norwegian energy services company established in 2003. Based in Volda, Vertikal has 125 employees and provides inspection, installation, and maintenance services to energy customers in the MMO, drilling, offshore and onshore wind, and hydro segments. Vertikal performs work using advanced industrial rope access techniques on complex structures such as offshore and onshore wind turbines, hydropower stations, and offshore oil and gas installations.
The consideration for the shares is a combination of NOK 25 million in cash and the contribution of Archer’s offshore drilling facilities construction business in Norway. The acquisition fits well with our strategy for smaller accretive and synergetic bolt acquisitions and we estimate a payback of less than 3 years. The remaining 35% of Vertikal will be owned by existing management and key employees.
Dag Skindlo, CEO of Archer comments:
“We are excited to announce this agreement. Vertikal's business aligns well with Archer's core oil and gas capabilities while opening avenues for growth in renewable sectors such as wind and hydropower. We anticipate significant long-term synergies and growth potential from the acquisition. I look forward to collaborating with the Vertikal team to further develop the business and extend a warm welcome to all employees joining the Archer group.”
Åsmund Vaage, of Vertikal Service AS comments:
“Through this strategic alliance, Vertikal Service will secure long-term contracts within the oil and gas segment and together with the Archer team, create a strong platform for further growth throughout our value chain. We are excited to join forces and continue our development of renewable business within hydro power and turbine services.”
Completion of the transaction is subject to customary closing conditions and Norwegian Competition Authority approval.
For additional information please contact:
Espen Joranger, Chief Financial Officer | Mobile: +47 982 06 812 | Email: [email protected]
Joachim Houeland, Manager Treasury & Investor Relations | Mobile: +47 482 78 748 | Email: [email protected]
