Proposed Acquisition Would Expand Valmet's Capabilities in Oil & Gas Market
COLUMBIA, Md., Sept. 21 /PRNewswire/ -- Valmet Automation (USA), Inc. and
GSE Systems, Inc. (Nasdaq: GSES), today announced the signing of a letter of
intent for Valmet to purchase substantially all of the assets of GSE's
Columbia-based Oil & Gas Business Unit, including the S/3 SCADA software
product. The proposed acquisition is subject to the execution of a definitive
purchase agreement, which is anticipated to be completed in October. Terms of
the agreement were not disclosed.
The addition of GSE's business would increase Valmet's presence on the
East Coast, as well as provide additional capability to offer integrated SCADA
and advanced applications to the Oil & Gas pipeline industry. The proposed
acquisition would also allow Valmet to offer its full range of supervisory
control and information systems, applications and consulting services to an
increased client base.
"Acquiring GSE's Oil & Gas Business Unit is consistent with Valmet's
commitment to provide high performing people and leading products to the
markets it serves," said Dave Jardine, Chief Executive, SAGE Systems Division
of Valmet Automation. "GSE's strengths in SCADA and advanced applications
perfectly complement Valmet's industry-leading solutions."
"We believe that this proposed transaction follows our previously
announced initiative to refocus our company back to building a strong core
business of controls and simulation," said Chris Carnavos, President of GSE
Systems. "Our Process and Power Business Units remain strong performers while
our Oil & Gas Business Unit, with excellent technology and people, will be
more effective with the market leader such as Valmet." GSE expects to record
a charge against earnings in connection with the sale during the third quarter
of 1998.
GSE Systems, Inc. develops and delivers business and technology solutions
by applying process control, data acquisition and simulation software, systems
and services to the energy, process and manufacturing industries worldwide.
The company's products are used in over 700 applications, representing over
250 customers in 30 countries in the following industries: specialty chemical,
food and beverage, petroleum refining, oil and gas, pharmaceutical, fossil and
nuclear power generation, metals and water treatment. GSE Systems is
headquartered in Columbia, Md., with offices in Georgia, Louisiana, Texas,
Arizona, Pennsylvania, North and South Carolina, and its global locations
include offices in Belgium, Japan, Korea, Singapore, Sweden and Taiwan.
Information about GSE Systems is available via the Internet's World Wide Web
at http://www.gses.com.
With major centers in Calgary, Canada, and Houston, Texas, and regional
offices in Pennsylvania and California, Valmet Automation's SAGE Systems
Division delivers supervisory control and information management systems and
real time IT services and solutions to the oil and gas pipeline, water, waste
water and electric utility industries worldwide. The company's spearhead
product OASyS, has vaulted Valmet's installed base to more than 500 customers
in over 35 countries. Global offices in Bordeaux, St. Petersburg, Helsinki,
Beijing and Hong Kong support an increasing international customer base.
Information about Valmet Automation, SAGE Systems Division can be found at
http://www.valmet-oasys.com.
This press release contains forward-looking statements that involve a
number of risks and uncertainties, including statements regarding the expected
consummation of a transaction involving substantially all of the assets of
GSE's Oil & Gas Business Unit and the future benefits Valmet Automation and
GSE Systems expect to derive as a result of such transaction. There are a
number of factors that could cause actual results to differ materially from
those indicated. Such factors include, without limitation, the possibility
that Valmet and GSE may be unable to agree on terms for a definitive
agreement, that such terms may be different than those currently anticipated,
the satisfaction of various customary closing conditions, and Valmet's success
in integrating GSE's Oil & Gas Business Unit into its own operations.
For further information about GSE Systems and the factors affecting its
results, refer to the Company's annual report on Form 10-K for the year ended
December 31, 1997 and other reports as filed with the Securities and Exchange
Commission.
SOURCE GSE Systems, Inc.
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Related links:
http://www.gses.com
CONTACT:
Chris Carnavos, President of GSE Systems,
Inc., 410-772-3600; or Dave Jardine, Chief Executive, SAGE
Systems Division of Valmet Automation, Inc., 713-939-9399; or
Doug DeLieto, General Info., Klea Theoharis, Analyst Info., or
Marty Gitlin, Media Info., 212-661-8030, all of The Financial
Relations Board
NOTE TO EDITORS: To receive additional information on GSE
Systems, Inc., via fax at no charge, dial 1-800-PRO-INFO and
enter ticker symbol GSES.
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