SOURCE: Summit Partners

July 30, 2007 02:00 ET

Summit Partners Invests in Welltec

ALLERØD, DENMARK and LONDON--(Marketwire - July 30, 2007) - Welltec, the world's leading provider of precision robotic solutions for oil and gas wells, today announced it has received an investment from Summit Partners, a private equity and venture capital firm that has raised nearly $9 billion in capital since 1984.

Welltec serves the world's major oil producers, and helps them increase production and prolong the producing lives of their wells and reservoirs. The company's proprietary technology makes it possible to unlock enormous value in a number of ways: higher production levels and revenue, increased oil recovery in maturing reservoirs around the world, optimal reservoir management, water prevention, lightweight, rig-less and riserless intervention, plus more effective well completion and stimulation -- all with certainty of execution.

Welltec's remote-controlled precision technology has revolutionized the industry and transformed the way oil and gas is produced. Experienced Welltec employees provide high technology services in onshore and offshore wells under extreme conditions, including in deepwater, subsea and Arctic conditions across vertical, deviated and horizontal wells. Welltec provides multiple services across different phases of the well's life including evaluation, drilling and completion, and production and intervention -- using its proprietary Well Tractor® and related mechanical tool technology. This technology is designed and manufactured in-house by skilled personnel in its Denmark headquarters. Welltec today has offices in 15 different countries and over 400 employees around the world. Welltec's customers include BP, ExxonMobil, Shell and Statoil.

"We are very pleased to join up with Summit Partners, which has a notable record of successful investments in the technology and energy sectors," said Jørgen Hallundbaek, Founder and CEO of Welltec. "Summit offers not only the financial experience and resources we need, but also strategic guidance and a significant network of contacts combined with a management-friendly approach. We will utilize these resources as we seek to expand our service offering and further grow our customer base."

"We are delighted to be an investor in Welltec, and look forward to working closely with its management team to continue growing this exceptional company," said Sotiris T. F. Lyritzis, a Principal with Summit Partners. Lyritzis continued, "The oil and gas industry continues to grow in size, technological complexity, and in global reach. Welltec, with its innovative technology, is ideally positioned to serve this marketplace."

Han Sikkens, Vice President in Summit Partners' London office, added: "Welltec technology represents a breakthrough in deploying intervention tools into oil and gas wells without the use of drill pipe or coiled tubing. This cutting-edge technology has established Welltec as a world leader in the development of cost-effective and highly value-creating solutions. Welltec Tractor technology and related mechanical tools have repeatedly demonstrated dramatic reductions in operating costs for oil companies."

The Riverside Company sold its shares as part of the transaction. Welltec's founder and management team continue to be strongly committed to Welltec with a majority ownership stake in the business. Summit's Lyritzis and Scott Collins, Managing Director, will join the Welltec Board of Directors.

Lind Cadovius served as legal counsel for Welltec. Kirkland & Ellis LLP and Bech Bruun served as legal counsel for Summit Partners.

About Welltec

Welltec (www.welltec.com) is the world's leading provider of precision robotic solutions for oil and gas wells. Welltec serves the world's major oil producers, and helps them increase production and prolong the producing lives of their wells and reservoirs. The company's proprietary technology makes it possible to unlock enormous value in a number of ways: higher production levels and revenue, increased oil recovery in maturing reservoirs around the world, optimal reservoir management, water prevention, lightweight, rig-less and riserless intervention, plus more effective well completion and stimulation -- all with certainty of execution.

Welltec provides multiple services across different phases of the well's life including evaluation, drilling and completion, and production and intervention using its proprietary Well Tractor® and related mechanical tool technology. The company is based in Allerød, Denmark.

About Summit Partners

Summit Partners (www.summitpartners.com) is a private equity and venture capital firm with offices in Boston, Palo Alto, and London. Founded in 1984, the firm has raised nearly $9 billion in capital in its private equity, venture capital, and subordinated debt funds. Summit has provided growth equity, recapitalization, and management buyout financing to more than 290 companies, which have completed nearly 125 public offerings and in excess of 105 strategic mergers or sales. Summit Partners seeks outstanding management teams that have self-financed their companies to profitability and market leadership.

Notable technology and energy sector companies financed by Summit Partners include Bartlett Nuclear, E-TEK Dynamics, FleetCor Technologies, McAfee Software, and SafeBoot.

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The business of Summit Partners in the UK is regulated by the Financial Services Authority. Summit Partners Limited is registered in England and Wales. The registered number is 4141197, and the registered office is located at 20-22 Bedford Row in London, WC1R 4JS, UK. In the US, Summit Partners operates as an SEC-registered investment advisor. This document is intended solely to provide information regarding Summit Partners' potential financing capabilities for prospective portfolio companies.

Contact Information

  • CONTACT INFORMATION
    Dawn Ringel
    Warner Communications (for Summit Partners)
    781-449-8456
    Email Contact

    Susan Barr
    Summit Partners
    617-824-1026
    Email Contact