Aker Solutions has agreed to acquire a majority stake in Aberdeen-based Enovate Systems Limited - a leading technology company within subsea well control equipment. The financial details of the acquisition are undisclosed.
Enovate, which currently employs 62 people, has developed a wide range of unique and patented components and products for use in open water workover systems, in riser workover systems, rigless intervention systems and drilling safety systems.
Specific advantages are superior cutting and sealing capabilities and the unique use of complete metal-to-metal sealing solutions which significantly reduce the probability of leakage and improve safety.
The company was established in 2002 and has cooperated with Aker Solutions for several years, specifically within the subsea and the oilfield services and marine assets business areas.
In the financial year 2012, Enovate had revenues of approximately GBP 15 million with an EBITDA (earnings before interest, taxes, depreciation, and amortization) of GBP 5 million.
"Enovate has developed and qualified unique technology for safe and efficient well control. Components from Enovate are also important building blocks for systems within workover and well-intervention services for high pressure and ultra-deep water fields worldwide," says Åsmund Bøe, chief technology officer in Aker Solutions.
The company will continue to be developed as an independent supplier of well control components to subsea integrators, oilfield equipment manufacturers and oil companies. Aker Solutions is committed to invest in increased capacity and further development of the product range in close collaboration with current customers.
"Aker Solutions is a company with significant in-house opportunities for our technology and with the required scale and reach to help us grow our own capacity and ability to serve clients internationally," says Jeff Edwards, who is the founder of the company.
Edwards and the current management of Enovate will continue to work for the company with Edwards as chief technology officer.
The acquisition is subject to approval from the Norwegian competition authorities.