The deal will involve $20.6m in cash consideration and 4,816,509 shares of Foraco.
The transaction is scheduled to close following the approval of the Toronto Stock Exchange and shareholder approval of Foraco at a meeting scheduled to be held in April 2012.
The parties have a call and a put option to transfer the remaining 49% of Servitec’s share capital, which is due to take place in 2015.
Servitec reported $70m in revenue last year with an earnings before interest, taxes, depreciation, and amortization margin of 24%.
Last year, nearly 65% of Servitec’s business was derived from gold exploration, while 75% of total revenue was received from majors.
Servitec’s current fleet includes 86 rigs of which 72 are diamond rigs and 14 constitute reverse circulation drill rigs, and ancillary equipment.
Following the deal, FORACO will have a total of 278 rigs.
