This deal is bullish for MIND, which IMO is trading well below Fair Value. MIND is going to report strong 1st quarter results.
DWSN – Buying Out TGE – Two of our favorite names in the seismic space are merging by DWSN acquiring TGE in a tax free stock-for-stock transaction, Based on closing prices the transaction is valued at $157 million or $8 per TGE share. The combined entity will have the biggest and strongest presence in the NA land seismic business. The acquisition will give exposure to DWSN to Canada and diversify its USA only based operations. In addition, the combined equity will have better flexibility and stronger positions. The management teams were bullish in the press release in terms of the outlook for the seismic market and the combined channel count and work forces should give the combined equity a better chance to profit from it. The conference call is today at 8:30EST. We currently have ‘Buy’ ratings on both names. We are bringing down our target price for TGE in order to reflect the conditions of the acquisition.