Akastor ASA, a Norway-based oil service investment company, has entered into a definitive agreement with the owners of UK-based NES Global Talent (NES) to join its Frontica Advantage (Advantage) business with NES. Akastor will become a shareholder in the combined company. The combination aims to create a global leader in staffing services to the oil and gas industry.

NES, which was established in 1978, has more than 45 offices in 28 countries across Europe, Africa, the Americas, Asia, Australia and the Middle East.  NES aims to accelerate Advantage's transformation process and expand its business into new segments and geographies going forward. AEA Investors, a leading global private investment firm, is the main owner of NES.

"NES and Advantage are complementary businesses and form a powerful combination that will benefit our customers going forward with NES's global operating platform," Kristian Røkke, CEO of Akastor, said.  "This transaction will create a larger, more diversified business that will be better positioned for a stronger future than could be achieved on a stand-alone basis."

"We are delighted to welcome the Advantage team to the NES Global Talent family,” Tig Gilliam, CEO, NES Global Talent, said. “With this acquisition, we look forward to bringing the full resources of NES to Advantage clients on a global basis. In this most challenging market for energy clients, geographic scope and breadth of capability is essential to deliver operational excellence and efficiency to our contractors and clients.  Adding Advantage to the NES proposition further strengthens our leading position in the human capital solutions market for top engineering talent." 

Initially, Akastor will receive a 15.2% ownership position in the combined entity with potential to increase its ownership depending on the growth of Advantage over the next three years.  The transaction will generate an estimated accounting gain of approximately NOK 430 million (EUR 47.6 million) to Akastor to be recognized upon closing.

The completion of the transaction is subject to customary closing conditions, including competition filing in Norway. Closing of the transaction is expected to take place in Q1 2017.