MetService pays $3 mln for MetOcean stake to gain access to $10 mln marine market
By Tina Morrison
Aug 6 (BusinessDesk) – MetService, the nation’s state-owned weather forecaster, paid $3 million for a 49 percent stake
in privately owned New Zealand oceanographic consultancy MetOcean Solutions, giving it a foothold in a market worth more
than $10 million.
The purchase will allow Wellington-based MetService to expand its research capability and add customised oceanographic
forecasting and consultancy expertise to its global offering. For MetOcean, the tie up enables it to expand
internationally with an established partner.
“Joining forces with MetOcean helps us accelerate our development in the energy sector and springboards us into the
rapidly-growing marine sector – a potential market of over $10 million – with established products and world-class
expertise,” MetService chief executive Peter Lennox said in a statement.
MetService is using debt to fund the purchase. The company had borrowings of $17 million as at June 30, 2012, although
it intended to pay back $2 million of those loans after balance date. In fiscal 2012, net profit fell 65 percent to $1.1
million after a one-time charge of $2.2 million for software development. Revenue rose 7.7 percent to $42.2 million,
according to the company’s annual report.
The Meteorological Service of New Zealand is a state-owned enterprise which provides weather information to industry,
media and retail businesses around the world. The company last month renewed its $2 million weather presentation
services contract with global broadcaster BBC.
The remaining shares in New Plymouth-based MetOcean are held equally between its three directors.
(BusinessDesk)