ION Geophysical Corp., which generates seismic data for oil and gas companies, said Wednesday it will pay $350 million Canadian ($343.6 million) for privately held ARAM Systems Ltd.
ARAM offers cable-based seismic systems used by exploration and production companies to identify underground structures that may contain oil and gas reserves.
Under the agreement, ION will buy all outstanding shares of ARAM and its affiliate Canadian Seismic Rentals Inc.
ION, which provides cableless seismic systems, will use an existing credit line and proceeds of long-term debt to pay $275 million in cash, with the balance of the payment coming in ION stock. ION shares closed Tuesday at $15.51.
The deal is expected to be neutral to ION earnings this year and add to next year's results.
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