Business
Pason Announces Intent to Purchase Outstanding Shares of Intelligent Wellhead Systems, Inc.
Pason Announces Intent to Purchase Outstanding Shares of Intelligent Wellhead Systems, Inc. ...
About this update from Pason Systems Inc.
[{"type":"text","content":"\n \n \n \n Pason Announces Intent to Purchase Outstanding Shares of Intelligent Wellhead Systems, Inc.\n \n \n /* Style Definitions */\nspan.prnews_span\n{\nfont-size:8pt;\nfont-family:\"Arial\";\ncolor:black;\n}\na.prnews_a\n{\ncolor:blue;\n}\nli.prnews_li\n{\nfont-size:8pt;\nfont-family:\"Arial\";\ncolor:black;\n}\np.prnews_p\n{\nfont-size:0.62em;\nfont-family:\"Arial\";\ncolor:black;\nmargin:0in;\n}\n \n \n \n \n \n \n Canada NewsWire\n \n \n \n \n \n \n CALGARY, AB\n \n \n ,\n \n \n Dec. 5, 2023\n \n \n /CNW/ - Pason Systems Inc. (TSX: PSI) (\"Pason\" or the \"Company\") is pleased to announce its intention to exercise a call option for the purchase of all remaining issued and outstanding common shares of Intelligent Wellhead Systems, Inc. (\"IWS\") not currently held by Pason for total consideration of\n \n $88.3 million\n \n (the \"Transaction\"). As part of the Transaction, Pason will also assume net debt of approximately\n \n $7.0 million\n \n at closing. The Transaction is expected to close on\n \n January 1, 2024\n \n , subject to customary closing conditions, and will be financed with cash on hand. As at\n \n September 30, 2023\n \n , Pason held\n \n $178.4 million\n \n in Total Cash.\n \n \n Pason initially invested in IWS in 2019, alongside Werklund Growth Fund L.P. and currently holds a non-controlling interest. Since 2019, Pason has invested a total of\n \n $65.5 million\n \n through the acquisition of common and preferred shares in IWS. The Company's initial investment included a call option agreement, granting Pason the option to purchase all remaining issued and outstanding shares at a predetermined price, exercisable at the Company's discretion.\n \n \n IWS is a privately-owned oil and gas technology and service company that provides engineered controls, data acquisition and software to automate workflows and processes at live well completions operations of the oil and gas industry. IWS has over 150 employees, with offices in\n \n Calgary, Alberta\n \n ,\n \n Houston, Texas\n \n ,\n \n Midland, Texas\n \n and\n \n Denver\n \n , Colorado. For the twelve months ended\n \n December 31, 2023\n \n , IWS expects to generate approximately\n \n $45 million\n \n in annual revenues, which would represent a compounded annual growth rate in excess of 85% since Pason's initial investment in 2019, and an increase from...