Tekmar Group has announced that it has signed a sale and purchase agreement for the acquisition of Subsea Innovation Ltd, subject to shareholder approval.

The proposed acquisition represents the Group's first transaction since its successful AIM admission in June 2018, launching the Group's strategy to acquire offshore energy businesses which have a clear technology focus, have complementary customer bases and can leverage Group support.

Subsea Innovation, which currently operates largely in the global oil and gas market will bring world-class engineering in the design, development and manufacture of back deck equipment and subsea pipeline repair clamps ("EPRC") to Tekmar's portfolio, along with a blue chip client list and a skilled engineering team.

James Ritchie, CEO of Tekmar Group plc, said: "When we floated on AIM we promised investors a dynamic business with a clear plan for the future. Today is just one part of the implementation of that plan and we are delighted to welcome Subsea Innovation into the Tekmar Group.

"As we continue through into 2019, you will continue to see us work towards our vision to become the partner of choice for the supply and installation support of subsea protection technology to the global energy markets. We will continue to put clients first and continue to innovate to remain at the forefront of the world's offshore energy industries."

Subsea Innovation is a world leader in the design, manufacture and supply of complex engineered equipment and technology used in the offshore energy market. Its products range from large equipment handling systems which operate on the back of installation vessels, pipeline repair clamps which protect major oil and gas pipelines, and equipment for the construction of offshore oil and gas projects. The business also has an extremely skilled engineering design team who develop world-leading concepts for some of the world's most challenging and exciting projects.

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Subsea Innovation employs 27 skilled staff, including a highly experienced management team, all of whom will remain with the business post acquisition.

The addition of Subsea Innovation's engineering team will add 16 specialist engineers to aid the development of new products for Group companies; in addition to adding long standing relationships with key EPC clients such as Technip FMC, Saipem and Subsea7 and oil and gas operators including the likes of BP, Shell and Total.

Subsea Innovation and Tekmar have shared heritage. In 2011, Tekmar Subsea Limited, originally founded by two commercial divers in 1985, divided to form two new entities Tekmar Energy Limited and Subsea Innovation Ltd.

Alasdair MacDonald, Non-executive Chairman of Tekmar, said: "Given the heritage, focus on engineering excellence, complementary products, shared markets and Subsea Innovation's track record in the delivery of back deck deployment equipment, the Board of Tekmar believes the acquisition is an excellent commercial, cultural and technical fit."

He continued "Our vision is to continue building on Tekmar's position as the global leader in subsea cable protection systems in the offshore wind market and to become the partner of choice for the supply of subsea protection equipment to the global energy markets. Subsea Innovation bring new capabilities, new markets and strong cross selling opportunities to the Group. Subsea Innovation's blue chip global client base will open up new sales opportunities for our offshore wind business. Equally, we expect Subsea Innovation to benefit from Tekmar's trusted name in offshore wind, opening up sales and supply chain opportunities for the previously wholly oil and gas focused business."

Dave Thompson, Managing Director of Subsea Innovation, added: "The team at Subsea Innovation is hugely excited by this move and view it as the start of the next phase in the development of our business. The oil and gas market is already showing clear signs of recovery; Tekmar's backing and its global offices and support functions would enable us to capitalise on this upturn and make strides towards our goal to become a global leader in both oil and gas and offshore wind."

Subsea Innovation will continue to trade under its own name and remain as a separate legal entity. There will be no disruption or change for its customers.

(MH)