EXCITING TIMES AHEAD

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REACH is taking major steps towards an exciting future

We have this afternoon published two news messages; we have raised equity through our new strategic partner, Wilhelmsen, and we have acquired iSurvey!

Reach invites to a webcast presentation of the iSURVEY acquisition and the partnership agreement with Wilhelmsen tomorrow, Friday 18 February 2022, at 10:00 CET. Reach Chairman Rachid Bendriss will host the presentation in English, on this direct link: https://channel.royalcast.com/landingpage/hegnarmedia/20220218_10/

A recorded version of the presentation will be available after the live stream is concluded. Participants will have the opportunity to submit questions online throughout the webcast session.

You can read the full press releases here:

Wilhelmsen agrees to acquire a 21% stake in Reach Subsea as part of strategic partnership for commercialization of Reach Remote

Haugesund, 17 February 2022: Reference is made to the stock exchange announcement published on 8 February 2022 regarding the offer received by Reach Subsea ASA (“Reach”) for a collaboration agreement covering an equity investment in Reach and a strategic co-operation for the commercialization of Reach Remote. Reach Subsea today announced that Wilhelmsen New Energy AS (“Wilhelmsen”) has entered into an investment agreement (the “Agreement”) whereby Wilhelmsen has agreed to become a 21% shareholder in Reach through subscribing for NOK 150 million in a directed private placement. The investment agreement forms part of a broader partnership, which will see the launch of the Reach Remote Unmanned Surface Vehicles (USVs).

Under the Agreement, Wilhelmsen has agreed to subscribe for, and be allocated, 46,126,567 new shares in Reach at a subscription price of NOK 3.25 per share. The agreement also includes the issuance of warrants (Nw.: tegningsretter), whereby Wilhelmsen will receive the right to subscribe for and be allocated an additional 44,766,684 new Reach shares at NOK 4.00 per share. The warrants have a duration of three years, can be exercised at any time, and will if fully exercised provide Reach with an additional NOK 179 million in new growth equity. The private placement and the issuance of the warrants will be put forth for approval to an extraordinary general meeting in Reach to be held on or about 14 March 2022.

The Reach Remote concept, operationalized in cooperation with Kongsberg Maritime and Massterly, was launched in early 2021 with a support grant from Innovation Norway. Reach is on track for the delivery of its two first Reach Remote USVs in 2023. By 2025, the company’s ambition is to provide a full portfolio of subsea services from a low-emission, cost-effective remote and autonomous fleet. Reach now has a term sheet in place with Sparebank 1 SR-Bank for a NOK 200 million debt facility for the first two USVs. Combined with the NOK 150 million private placement, the company will be able to embark on the construction and commercialization phase of Reach Remote.

“We are very pleased to welcome an established industry player such as Wilhelmsen onboard as a strategic partner. Wilhelmsen has been a pioneer in driving autonomous and remote marine operations. By combining our core maritime competencies, global footprints, and wide-ranging networks, we will scale up the Reach Remote project and future-proof the marine subsea services through safe and sustainable solutions that will dramatically lower operational costs and the environmental footprint of operations,” said Jostein Alendal, CEO of Reach Subsea.

The Reach Remote USVs will serve as mobile power banks, data centers and communication modules for underwater ROVs (Remotely Operated Vehicles), with the USVs operated from Massterly’s onshore control centers. Features for both real time operator control and autonomous operations will be incorporated, as well as hybrid modes blending remote and semi-autonomous control.

Reach Remote will build on framework agreements already in place to position Reach as a preferred supplier of survey-, inspection-, and light repair services to the existing subsea market and the fast-growing offshore wind industry. Reach Remote will also be key to providing services to emerging markets, such as deep-sea mining, carbon storage, offshore aquaculture and environmental surveillance and data gathering.

Jan Eyvin Wang, Executive Vice President, New Energy at Wilhelmsen said: “We have been actively assessing the subsea market to find a company that could add complementary scale to our ambition within renewables. We see potential to grow within emerging sectors such as offshore wind, subsea cables and other offshore electrification infrastructure, carbon storage and deep-sea mining. Through their strong customer relations, extensive experience and cutting-edge technology gained from offshore oil and gas, Reach Subsea is an ideal partner.”

“Wilhelmsen represents the ideal industrial global partner needed for Reach to scale and commercialize Reach Remote. This partnership will benefit both companies and their international customer base across sectors. On behalf of North Energy, I am pleased to welcome Wilhelmsen, who shares our strategic visions for Reach, as a new major shareholder in Reach,” said Rachid Bendriss, Chairman of Reach and co-CEO of North Energy.

The election committee of Reach will propose to the Annual General Meeting that Espen Gjerde, VP Strategy and M&A in Wilhelmsen, is elected as a new board member of Reach. The proposal is supported by Reach’s existing major shareholder, North Energy ASA.

Reach invites to a webcast presentation of the iSURVEY acquisition and the partnership agreement with Wilhelmsen tomorrow, Friday 18 February 2022, at 10:00 CET. Reach Chairman Rachid Bendriss will host the presentation in English, on this direct link: https://channel.royalcast.com/landingpage/hegnarmedia/20220218_10/

A recorded version of the presentation will be available after the live stream is concluded. Participants will have the opportunity to submit questions online throughout the webcast session.

For further information, please contact:

Rachid Bendriss, Chairman of the Board, rb@northenergy.no

About Reach Subsea:

Reach Subsea ASA Group offers subsea services as a subcontractor and/or directly to end clients, based out of our head office in Haugesund. The core business of the Group is based on modern, high spec Work ROVs operated by highly-qualified offshore personnel, and supported by onshore engineering resources. The Group’s objective is to be a preferred subsea partner and full-service provider of subsea operations for clients, focusing on safety, environment, financial solidity and profitability.

Reach Subsea acquires offshore survey company iSURVEY for NOK 135 million

Haugesund, 17 February 2022: Reach Subsea ASA (“Reach”), a provider of subsea services globally, today announced that the Company has entered into an agreement with iSURVEY Holding AS to acquire ISURVEY Group AS (“iSURVEY”), a provider of offshore high-quality survey services, for NOK 135 million.

“With the acquisition of ISURVEY, we are developing Reach Subsea into a larger, more robust, fully integrated company, with strengthened in-house data management and data processing capabilities. This will enable us to take on larger subsea projects on a global scale and accelerate our expansion into emerging new industry verticals, such as offshore wind,” said Jostein Alendal, CEO of Reach Subsea. “Through our long-standing relationship with iSURVEY, we know the two organizations are a good cultural fit, as well as complementing each other’s technology offerings and customer portfolios.”

Under the terms of the agreement, Reach will acquire iSURVEY Holdings AS’ 100% interests in iSURVEY for NOK 135 million on a neutral working capital and debt basis. iSURVEY Holding AS is owned 71.8% by Norvestor VI, LP’s, a fund managed by Norvestor Investment Management S.a.r.l., while the company’s management team and current and former employees hold the remaining 28.2%. The transaction will be settled through the issuance of 33.8 million shares in Reach, valued at NOK 3.25 per share, and NOK 25 million in cash. The consideration shares issued to iSURVEY Holding AS will be subject to lock-up until 10 December 2022. Following completion of the transaction, and completion of the NOK 150 million private placement towards Wilhelmsen New Energy AS (see separate stock exchange release published today), iSURVEY Holding AS will become a 15% shareholder in Reach. The transaction will be presented for approval at an extraordinary general meeting in Reach expected to be held on or about 14 March 2022. Subject to approval and fulfilment of other customary closing conditions, the transaction is expected to close in the first quarter of 2022.

In summary, the transaction presents the following strategic benefits:

  • Strengthens Reach’s data management and data analytics capabilities, providing the company with a platform to become a full-service provider of subsea data and solutions for clients globally.
  • Optimizes Reach’s project portfolio, improving earnings visibility and stability.
  • Enables Reach, through the combined offerings of the two companies, to operate full survey spreads on multiple vessels.
  • Increases Reach’s revenue potential and margins through expanded service offerings to both existing and new client segments, and creates significant revenue synergies from the cross-selling of Reach and iSURVEY’s services to each other’s customer base.
  • Strengthens the Company’s inhouse software and competence for the Reach Remote unmanned surface vessels (USV), scheduled for delivery in 2023. By 2025, Reach’s ambition is to provide a full portfolio of subsea services from a low-emission, cost-effective remote and autonomous fleet.
  • Enhances Reach’s presence and offering to the renewable energy sector, which represents 50% of iSURVEY’s revenues.
  • Adds a strategic pillar and operating team of over 100 world-leading offshore surveyors and project management specialists in their field to advance Reach’s broader strategy for technology and data processing, as well as adding key competence required for gathering and processing of seabed survey data.

Established in 2004, iSURVEY’s services cover all phases required to convert geophysical data into value. Marrying expert technical knowledge with state-of-the art technology, Billingstad, Norway-based iSURVEY offers a whole range of offshore services. These include seabed survey/IRM services, offshore cable installations, rig moves and mooring, and marine construction. iSURVEY’s customers are global oil & gas, renewable energy and telecommunications companies. iSURVEY has bases in Norway, Singapore and the UK, which allows the company to provide a rapid, responsive service, deploying services and personnel to all regions of the globe.

“We are excited to be joining forces with Reach, whose commercial and technical track record, and global growth trajectory in recent years, has impressed us immensely. By combining our service offerings, we will create a leading global full-service provider of subsea data and solutions for all types of offshore assets, throughout the lifecycle,” iSURVEY co-founder and CEO Øivind Røegh said.

“We strongly believe in the combination between Reach and iSURVEY. The two companies have complimentary capabilities, and the organizations know each other well from working together on several projects. Over the last years, iSURVEY has focused on developing into new market segments, and Reach can realize the full potential of iSURVEY’s investments in data management and data processing capabilities, as well as the investments in remote operation capabilities. Reach will also benefit from iSURVEY’s strong position within the offshore wind and subsea cable markets,” said Are Stenberg, Investment Director in Norvestor Advisory and chairman of the board of directors of iSURVEY Holding AS.

The election committee of Reach will propose to the Annual General Meeting that Arvid Pettersen, board member of iSURVEY Holding AS, is elected as a new board member of Reach. The proposal is supported by Reach’s existing major shareholder, North Energy ASA.

Advokatfirmaet Schjødt AS acted as legal advisor and Fearnley Securities AS as financial advisor to Reach in the transaction.

Reach invites to a webcast presentation of the iSURVEY acquisition and the partnership agreement with Wilhelmsen tomorrow, Friday 18 February 2022, at 10:00 CET. Reach Chairman Rachid Bendriss will host the presentation in English, on this direct link: https://channel.royalcast.com/landingpage/hegnarmedia/20220218_10/

A recorded version of the presentation will be available after the live stream is concluded. Participants will have the opportunity to submit questions online throughout the webcast session.

For further information, please contact:

Jostein Alendal, CEO, jal@reachsubsea.no
Birgitte Wendelbo Johansen, CFO, bwj@reachsubsea.no  

About Reach Subsea:

Reach Subsea ASA Group offers subsea services as a subcontractor and/or directly to end clients, based out of our head office in Haugesund. The core business of the Group is based on modern, high spec Work ROVs operated by highly-qualified offshore personnel, and supported by onshore engineering resources. The Group’s objective is to be a preferred subsea partner and full-service provider of subsea operations for clients, focusing on safety, environment, financial solidity and profitability.

www.reachsubsea.no