Schlumberger to sell Global Connectivity Services business
SatelliteFinance understands that global oilfield services company Schlumberger is looking to sell its Global Connectivity Services (GCS) business. The company has appointed JP Morgan to run the sale with the unit estimated to be worth around…
SatelliteFinance understands that global oilfield services company Schlumberger is looking to sell its Global Connectivity Services (GCS) business. The company has appointed JP Morgan to run the sale with the unit estimated to be worth around US$300m.
One banker familiar with the process suggested that it is currently at a very early stage and that potential bidders would be making their initial approaches in the next couple of weeks. Interest is expected from both private equity firms and strategic buyers, in particular satellite companies.
GCS offers communications services for the oil and gas industry, connecting remote rigs and offices both terrestrially and via satellite. For the latter, GCS supplies custom-engineered VSAT antenna systems connected via mobile satellite service operator Inmarsat’s constellation.
Schlumberger could do with extra cash having suffered a difficult year due to the stagnant global demand for oil and natural gas. Annual revenues fell from US$27.16bn in 2008 to US$22.7bn in 2009. The company is also seek to play a central role in the consolidation that is taking place throughout the industry. It recently completed the US$1bn acquisition of French oilfield services company Geoservices, while it is currently awaiting regulatory approval from the US antitrust authorities over its planned stock-for-stock merger with Smith International Inc.
