Calgary-based RMS Systems Inc. (
TSX:V.RMS,
Stock Forum), a $30.8 million market cap company that develops web-based remote drilling data retrieval software for oil and gas companies, announced today they have entered into an arrangement agreement with PHX Energy Services Corp. (
TSX:T.PHX,
Stock Forum) that would see PHX take over all issued and outstanding shares of the company.
Looking to expand into a market segment that compliments their existing services, PHX will give up 0.037209 of a common share in their company for every RMS share, giving RMS an ascribed value of $0.40, and $10.75 for their own shares – a 112% premium over market average.
PHX owns 39.85% of outstanding RMS shares currently, and plans to retain all existing employees, including key management. PHX and the EMS directors, combined, own or control approximately 57% of the shares outstanding.
According to
a news release, “RMS recently completed upgrades to its technology to create a more competitive product and PHX believes it can successfully market this technology with its proven ability to foster strong client relationships. PHX will leverage its existing infrastructure and geographical footprint to expand market share and create cost benefits where possible. RMS believes that the synergies achieved with the integration into PHX will provide accelerated growth for its existing business while providing its shareholders with exposure to a high quality energy services business with an attractive dividend.”