Plexus Holdings PLC (LON:POS) has confirmed it has now completed the sale of its jack-up business to a subsidiary of TechnipFMC.
The company has now received the initial consideration of £14.16mln, and could receive up to £27.6mln of future payments depending on the performance of the jack-up business.
READ: Plexus Holdings boss Ben van Bilderbeek is upbeat ahead of AGM
Additionally, the company confirmed it has now entered into a collaboration agreement with Technip, establishing a framework to develop Plexus’ POS-GRIP technology outside of the jack-up market.
The sale and collaboration with a top tier oil and gas services group marks the culmination of the first phase of Plexus’ new strategy, the company said in a statement on Thursday.
It added that it will also continue to work independently and with third parties to further monetise its oil services technology.
“The disposal and collaboration agreement is a win-win for both parties,” said Ben Van Bilderbeek, Plexus chief executive.
“As well as achieving a sale value of up to £42,500,000 for the Jack-up Business, we gain industry recognition for our technology, which we have long claimed sets a new standard in terms of performance and safety.
“Furthermore, we have secured the opportunity to collaborate with a top tier company to explore potential development of additional products based on POS-GRIP.”
He added: "While the disposal and collaboration agreement is a major milestone for Plexus, we see this as merely marking the end of the first phase of the Company's development.
READ: Plexus Holdings looking forward to new post-disposal position as IP and licensing business
“Plexus is now entering what we believe will be a highly exciting and rewarding period, as we focus on developing and positioning new and existing POS-GRIP enabled products beyond wellheads for jack up exploration, both within the oil and gas sector, including production and subsea, and the wider energy industry, such as renewables and geothermal.”