Target Company Overview

Norvestor VI LP, managed by Norvestor Equity AS, has entered into an agreement to invest in iSURVEY Group AS, a prominent provider of survey and positioning services primarily catering to the global oil and gas industry. Established in 2004 by a team of seven industry veterans, iSURVEY has experienced significant growth, currently employing 90 professionals and generating a turnover of NOK 125 million in 2012.

With a robust foothold on the Norwegian Continental Shelf (NCS), the company has also ventured into select international markets. To bolster its presence in the Asian markets, iSURVEY opened an office in Singapore in 2011, focusing on areas such as rig positioning, seabed surveying, and subsea construction services.

Industry Overview

The oil and gas sector in Norway remains a cornerstone of the country's economy, significantly contributing to its GDP and employment rates. As global energy demand continues to rise, the need for efficient and innovative services in the oil and gas sector becomes ever more critical.

Norwegian companies are recognized for their technological advancements and expertise in offshore operations, positioning them as leaders in the global maritime and energy markets. The increasing complexity of offshore projects necessitates specialized services such as those offered by iSURVEY, making their role pivotal in supporting the industry's growth.

Furthermore, as environmental concerns intensify, the industry is evolving to adopt more sustainable practices. This transition drives demand for companies that not only provide traditional services but also offer solutions that align with eco-friendly initiatives and regulatory requirements.

With Norway's strategic maritime advantage and established reputation for high-quality services, firms like iSURVEY are well-positioned to capitalize on both domestic and international opportunities within the market.

Rationale Behind the Deal

The decision to engage with Norvestor stems from iSURVEY's readiness to advance to the next phase of its development. Øivind Røegh, co-founder and CEO of iSURVEY, emphasized the importance of new resources and expertise to propel the company's growth strategy. The partnership aims to enhance iSURVEY's operational capabilities and accelerate its expansion into new markets.

Norvestor's proven track record in nurturing businesses within the oil services sector provides confidence that their investment will facilitate a strategic evolution for iSURVEY, aiming for continued growth both on the NCS and globally.

Investor Information

Norvestor Equity AS is a leading private equity firm specializing in lower mid-market buyouts in the Nordic region. The experienced management team has been active since 1991, executing 51 investments and orchestrating 181 acquisitions and divestitures. This extensive experience equips Norvestor with the necessary knowledge to identify and capitalize on growth potential in companies like iSURVEY.

Focusing on investments within the Norwegian and Swedish mid-markets, Norvestor aims to foster organic growth and pursue acquisitions in fragmented industries. The firm's current portfolio includes several notable companies across various sectors, highlighting its diverse investment strategy.

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The acquisition of iSURVEY by Norvestor is a strategic move that positions both parties for significant growth. It allows iSURVEY to leverage Norvestor's expertise and network in the oil services sector, critical for implementing an aggressive growth strategy. Given the strong demand for specialized survey and positioning services within the oil and gas industry, this partnership is likely to unlock further opportunities for iSURVEY.

Moreover, the company's established presence in the NCS and the growth potential in international markets, especially in Asia, aligns well with Norvestor’s ambitions. This investment could facilitate a more rapid expansion, enhancing iSURVEY's position as a leader in its niche.

However, while the positive outlook is promising, the success of this investment will hinge on effective execution of the growth strategy in what is a competitive and rapidly changing market. With the right management and resources, iSURVEY has the potential to emerge as a significant player on the global stage.

In conclusion, this investment represents a well-timed opportunity for both iSURVEY and Norvestor, given the high growth trajectory of the global oil services market. The deal should foster innovation and expansion, ultimately benefiting both the investor and the target company as they navigate the complexities of the industry together.

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