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Emerson to enter offshore oil & gas market with strategic buy-out

Emerson Process Management is bidding to buy-out offshore test and measurement and software supplier, Roxar ASA, in a strategic decision to offer its oil and gas customers a more “complete product and service offering”.

Aegir Norge Holding AS — an Emerson company — has reached an agreement with Roxar ASA to launch an offer for 100 per cent of Roxar’s shares, which if passed could mean Emerson takes on the Roxar business along with approximately US$212 million of Roxar debt, and also enters the test and measurement industry with new Roxar products.

Roxar is a global supplier of measurement technologies and software solutions for upstream oil and gas and other process industries, including offshore monitoring equipment. The company, which is based in Stavanger, Norway, had revenues of approximately US$193 million in 2008.

Upon successful completion of the acquisition, Roxar will become part of Emerson Process Management, which currently offers a range of pressure, temperature, level and flow measurement products itself. The Roxar acquisition will allow Emerson to expand its products and software offering to include solutions for offshore and well optimisation.

The US$121 million acquisition will be financed by Emerson through existing cash balances and is not subject to any financing condition, said the company. The voluntary offer is expected to close in April 2009, assuming satisfaction of all conditions.

“With its solid positions and respected name in offshore metering and monitoring equipment and well optimisation software, Roxar is a strong complement to Emerson,” said Emerson Process Management executive vice president, Steven Sonnenberg.

“Like Emerson, Roxar is respected for its technology innovation and leadership. Our oil and gas customers will benefit from the more complete product and service offering that will result from this strategic combination.”

Roxar chairman, Hans Olav Torsen, said: “The Roxar Board has looked at all strategic alternatives for the company and taken considerable time for this process. The Board considers Emerson as an attractive partner to Roxar, with a similar technology and customer focused business culture and complementing market segments.”

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