RigNet Inc acquires Nessco Group Holdings Ltd for $48.9 million

PRESS RELEASE

RigNet Inc. (Nasdaq: RNET) has acquired Nessco Group Holdings Ltd., a Scotland-based international telecommunications company, for $48.9 million.
The all-cash purchase includes Nessco’s 30,000 square foot headquarters facility in Aberdeen, Scotland, plus working capital, RigNet said in a July 5 statement.
“Our customers will have immediate access to a broader range of integrated communications solutions as a result of this acquisition,” Mark Slaughter, RigNet’s CEO and president, said in a statement. “Additionally, RigNet will now have the ability to support customers across the entire oil and gas value chain.”
The combined business will operate under the RigNet brand, but the systems integration offerings will be co-branded with the Nessco brand in the short-term.
RigNet’s Aberdeen operations will be moved into Nessco’s facility, with the combined Aberdeen operation to be led by Ian McPherson, currently managing director of Nessco. No workforce reductions are expected, and both companies expect business operations to continue as usual, according to the statement.
In connection with this transaction, RigNet has entered into an amended and restated secured credit facility with Bank of America , N.A., and BBVA Compass. The amended and restated credit facility provides for a $66.4 million term facility and $10 million revolving facility.
Based in Houston, RigNet provides managed remote communications solutions to the oil and gas industry. Last fall, the company was one of four Houston companies ranked on Deloitte & Touche LLP’s list of the to 500 fastest growing technology companies in the U.S. and Canada.