Halliburton acquires HitecVision’s investment in Knowledge Systems
Stavanger, 6th May 2008: HitecVision announced today an agreement to sell its investment in Knowledge Systems, a leading provider of geopressure and geomechanical solutions, to Halliburton.
Founded in 1985, Knowledge Systems Inc. provides market-leading combined geopressure and geomechanical analysis software and services. The company, headquartered in Sugar Land, Texas, has approximately 90 employees and offices in Sugar Land, Perth, Australia and Guildford, UK. Knowledge Systems is a portfolio company of the fund HitecVision Private Equity III AS (Fund III), managed by HitecVision Private Equity AS.
Halliburton Inc. (NYSE: HAL) has acquired all intellectual property, assets and existing business of Knowledge Systems through Landmark, a product service line of its Drilling and Evaluation Division. Ensuring that wells are placed optimally and economically, while minimizing non-productive time during the drilling process, requires an end-to-end well design and delivery solution. The addition of Knowledge Systems to Halliburton’s suite of technologies and services delivers such a solution.
Finn Ivar Marum, Senior Partner of HitecVision, stated: “When we made the investment in Knowledge Systems in 2004 we viewed the company’s proprietary technology as market leading within its niche and saw a significant growth potential within solutions for improved and more cost effective drilling operations. The company’s strong and entrepreneurial management, under the leadership of Jim Bridges and Jamey Webster, has proven its ability to develop a profitable, international business and stay ahead of the competitors.”
Marum added: “A trade sale to one of the world’s leading oil service companies was our base case at the time of the investment, and Landmark’s acquisition of Knowledge Systems confirms the strength and value of the geomechanical and geopressure solutions. We are very pleased that Knowledge Systems can continue its development in the Halliburton group. The return on our investment in Knowledge Systems continues the strong track record of Fund III’s exits. This process has also confirmed the importance of having a presence in Houston.”
“The success of Knowledge Systems is due to the outstanding support of our customers and owners, in combination with the hard work and dedication of our staff ,” said Jim Bridges, founder and chairman of the board of Knowledge Systems. “We are excited that this acquisition by Landmark will create synergies that stand to improve drilling efficiency and reduce drilling costs throughout the industry.”
For further details on Knowledge Systems, Halliburton and Landmark, please visit their web sites: