TGS-NOPEC Geophysical Co. ASA said May 2 it is cementing its position as a leading provider of multiclient seismic data with the acquisition of Spectrum ASA.

Spectrum provides multiclient seismic surveys and seismic imaging services to the global oil and gas industry from offices in Norway, the U.K., U.S., Brazil, Egypt, Australia, Indonesia and Singapore. TGS, headquartered in Norway with an operational base in Houston, said it agreed to acquire Spectrum in a transaction that values the company at roughly $422 million (NOK 3.7 billion).

TGS expects cost synergies from the combination with a preliminary estimate of roughly $20 million annually. Further, TGS’ library of 2-D and 3-D seismic data will cover all major mature and frontier basins worldwide as a result of the transaction, according to the company press release.

In particular, Spectrum has successfully built a strong position in the South Atlantic and other key offshore basins, which TGS CEO Kristian Johansen said fits well with the company’s key strategic goals.

“TGS remains committed to maintain the existing dividend policy and emphasizes that the strong cash position, the combination of two free cash flow positive entities and significant cost synergies, will enable continued industry-leading shareholder returns,” she said in a statement.

TGS said it anticipates closing the merger with Spectrum during third-quarter 2019.

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