Trio Merger Corp. and SAE agree to merge

Dec. 13, 2012 at 3:21 PM
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CALGARY, Alberta, Dec. 13 (UPI) -- Trio Merger Corp. and SAExploration have agreed to merge as part of a strategy to expand SAE's seismic data acquisition business worldwide.

SAE was set up in Peru in 2006 and is a Delaware corporation with headquarters in Calgary, where it employs about 60 administrative staff while running up to a dozen seismic exploration operations globally with an additional work force of more than 7,000.

Seismic data collection is a growing business and is universally seen by various industries, most particularly the energy sector, as a cost-effective way of acquiring specialized seismic information instead of mounting costly similar ventures themselves.

SAE is one of the largest international seismic data acquisition and processing companies in the world with customers among oil and gas exploration and production companies, including national oil companies.

SAE's global seismic work employs about 600 permanent and 7,000 seasonal staff.

The announcement said the companies will merge into a wholly owned subsidiary of Trio.

Before the merger, SAE was a holding company of various subsidiaries cumulatively forming a geographically diversified seismic data acquisition company.

SAE provides a full range of two-dimensional, three-dimensional and four-dimensional seismic data services to clients. Those activities include surveying, program design, logistical support, data acquisition and processing.

The company serves its multinational client base from offices in Canada, Alaska, Bolivia, Brazil, Columbia and Peru in Latin America, as well as Papua New Guinea and New Zealand.

SAE Executive Chairman Jeff Hastings said the companies were "excited about the opportunity to consummate the TRIO-SAE merger. SAE has enjoyed impressive growth for the past several years and the additional capital provided through the merger will facilitate further expansion in our core areas as well as provide higher visibility in the marketplace."

SAE's unaudited revenues for the first nine months of calendar 2010 and 2012 increased from $75.4 million to $209.3 million, a compound annual growth rate of 66.6 percent. During the same period, nine-month earnings before interest, taxes, depreciation and amortization increased from $7.4 million to $26.9 million, a compound annual growth rate of 90.9 percent. At Nov. 30, 2012, SAE's backlog was $248.3 million and it had $315.7 million in bids outstanding.

Trio Chairman and Chief Executive Officer Eric Rosenfeld said, "We believe that SAE represents everything we were searching for in a merger opportunity."

Given the geographic diversity of SAE's operations, Trio believes the merged company will be well positioned to capitalize on "compelling growth opportunities" in the Americas, including the lower U.S. states.

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