HOUSTON, March 20, 2020 /PRNewswire/ -- ION Geophysical Corporation (NYSE: IO) today announced the Company entered into an agreement to sell its 49% equity stake in INOVA Geophysical Equipment Limited (INOVA) for $12 million. INOVA is a land seismic equipment joint venture with BGP Inc., the world's largest land seismic service provider, who owns the remaining 51%. INOVA is a leading provider of land geophysical technology, including acquisition systems, source products and digital sensors. In 2014, ION wrote down its investment in INOVA to zero. The parties anticipate closing the deal in the second half of the year, subject to regulatory approvals and other closing conditions.
"This divestment is aligned with ION's strategy to focus on higher potential return offerings offshore that value our leading technology and experience while monetizing non-core assets," said Chris Usher, ION's President and Chief Executive Officer. "I am pleased we reached a mutually beneficial agreement that supports our customers while delivering value to our shareholders. The proceeds will support our entry into the 3D new acquisition market and development of our Marlin™ SmartPort business while further bolstering our liquidity."
ION develops and leverages innovative technologies, creating value through data capture, analysis and optimization to enhance critical decision-making, enabling superior returns. For more information, visit iongeo.com.
ION (Investor relations)
Executive Vice President and Chief Financial Officer
Mike Morrison, +1 281.552.3011
ION (Media relations)
Vice President, Communications
Rachel White, +1 281.781.1168
The information herein contains certain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. These forward-looking statements may include information and other statements that are not of historical fact. Actual results may vary materially from those described in these forward-looking statements. All forward-looking statements reflect numerous assumptions and involve a number of risks and uncertainties. These risks and uncertainties include the risks associated with the timing and development of ION Geophysical Corporation's products and services; pricing pressure; decreased demand; changes in oil prices; and political, execution, regulatory, and currency risks. These risks and uncertainties also include risks associated with the WesternGeco litigation and other related proceedings. We cannot predict the outcome of this litigation or the related proceedings. For additional information regarding these various risks and uncertainties, including the WesternGeco litigation, see our Form 10-K for the year ended December 31, 2019, filed on February 6, 2020. Additional risk factors, which could affect actual results, are disclosed by the Company in its filings with the Securities and Exchange Commission ("SEC"), including its Form 10-K, Form 10-Qs and Form 8-Ks filed during the year. The Company expressly disclaims any obligation to revise or update any forward-looking statements.
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SOURCE ION Geophysical Corporation