IHS Closes Acquisition of Seismic Micro-Technology
August 11 2011 - 7:00AM
Business Wire
IHS Inc. (NYSE:IHS), the leading global source of information
and analysis, today announced it has completed the closing of its
acquisition of Seismic Micro-Technology (SMT), a market leader for
geoscience software. The acquisition closed for $500 million in
cash and is the largest acquisition in IHS history.
“We are thrilled to welcome SMT to the IHS family and we expect
integration to go quickly and smoothly. The combination of SMT’s
KINGDOM software and IHS PETRA will create an integrated solution
that will address many current customer needs regarding ease of
use, increased productivity and increased accuracy,” said Jerre
Stead, IHS chairman and chief executive officer. “KINGDOM brings a
particular strength in geophysical interpretation and when combined
with our IHS PETRA offering and its strength in geologic
interpretation, it will offer our customers a geosciences workflow
solution that is unmatched in the current marketplace.”
Since 1984, SMT has provided the upstream exploration and
production industry with easy to use, highly integrated,
cost-effective software solutions. Headquartered in Houston, the
company developed the first geoscience interpretation tools for the
Microsoft Windows environment to help accelerate hydrocarbon
exploration, collaboration and decision-making while delivering
exceptional accuracy and consistency. Today, SMT is a global leader
in Windows-based exploration and production software, and its
solutions are used by geoscientists in more than 100 countries to
evaluate potential reservoirs and plan field development.
“The convergence of information and analytics is the wave of the
future in the marketplace, and the combination of KINGDOM and IHS
PETRA seizes upon this significant growth opportunity,” said Arshad
Matin, SMT president and CEO. “Thousands and thousands of
geoscientists are graduating annually, particularly in high-growth
markets like Russia, India and China, and we believe this combined
offering from IHS has the opportunity to become the workflow of
choice for the profession.”
With 171 employees and more than 3,000 customers globally, SMT
has earned a loyal following for its software platforms that boast
great ease of use and mobility. IHS has a long-standing focus on
and investment in information browsing and analysis tools for the
oil and gas industry in order to give customers efficient and
accurate use of its industry-leading information products.
Stead added: “We estimate that the $2 billion geosciences
software market is likely to grow close to 50 percent by 2015. The
combined offering of IHS and SMT represents a very small fraction
of the total available market, so the growth opportunity is
enormous.”
Outlook (forward-looking statement)
For the year ending November 30, 2011, IHS is increasing both
its revenue and its adjusted EBITDA guidance, maintaining its
adjusted EPS guidance, and expects:
- All-in revenue in a range of $1.307 to
$1.337 billion;
- All-in adjusted EBITDA in a range of
$399 to $407 million; and
- All-in adjusted EPS in a range of $3.33
to $3.43 per diluted share.
IHS is updating its 2011 guidance solely to incorporate the
inclusion of SMT. This update reflects current foreign currency
rates and acquisitions completed to date.
Furthermore, for the third quarter of 2011, because of how late
in the quarter IHS completed the transaction, the company expects
the SMT acquisition to push the company toward the higher end of
its previously announced adjusted EBITDA guidance range of $97-99
million.
IHS senior management will host a conference call and webcast to
discuss the SMT acquisition on Thursday, August 11 at 8:00 a.m.
EDT. To hear the live event, visit the IHS website at
http://www.ihs.com/Investor-Relations/ and log on at least 15
minutes prior to the start of the webcast.
About IHS
(www.ihs.com)
IHS (NYSE: IHS) is the leading source of information and insight
in critical areas that shape today’s business landscape, including
energy and power; design and supply chain; defense, risk and
security; environmental, health and safety (EHS) and
sustainability; country and industry forecasting; and commodities,
pricing and cost. Businesses and governments in more than 165
countries around the globe rely on the comprehensive content,
expert independent analysis and flexible delivery methods of IHS to
make high-impact decisions and develop strategies with speed and
confidence. IHS has been in business since 1959 and became a
publicly traded company on the New York Stock Exchange in 2005.
Headquartered in Englewood, Colorado, USA, IHS employs more than
5,100 people in more than 30 countries around the world.
IHS is a registered trademark of IHS Inc. All other company and
product names may be trademarks of their respective owners.
Copyright © 2011 IHS Inc. All rights reserved.
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forward-looking statements as defined in the Private Securities
Litigation Reform Act of 1995. Forward-looking statements are
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include financial projections and estimates and their underlying
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beyond the control of IHS--that could cause actual results and
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implied or projected by, the forward-looking information and
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or identified by IHS from time to time in its public filings. Other
than as required by applicable law, IHS does not undertake any
obligation to update or revise any forward-looking information or
statements. Please consult our public filings at www.sec.gov or
www.ihs.com.
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