HitecVision Sells Knowledge Systems Stake

HitecVision, an oil and gas sector-focused private equity firm, has sold its investment in Knowledge Systems, a geopressure and geomechanical services business, to Halliburton.

Founded in 1985, Knowledge Systems is headquartered in Texas, with offices in Guildford, UK and Perth, Australia. The business has approximately 90 employees.

Knowledge Systems was a portfolio company of HitecVision Private Equity III, a NOK690m (US$136m) vintage 2002 fund, originally named Energivekst. The fund acquired a 35% stake in Knowledge Systems in January 2005 for an undisclosed sum.

“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 [a Halliburton subsidiary] acquisition of Knowledge Systems confirms the strength and value of the geomechanical and geopressure solutions,” said Finn Ivar Marum, senior partner at HitecVision, who noted that the exit showed the benefits of having “a presence in Houston”.

HitecVision is currently investing from its fifth fund, which raised US$800m earlier this year. The fund is targeting eight to ten portfolio companies, primarily in Europe and North America, with revenues of between US$50m and US$300m. Equity investments are expected to be between US$30m and US$150m.

Fund V's investments to date are Norway's Hitec Products Drilling and Spring Energy Norway, a US$120m equity financing.

Source: Thomson Merger News