Cegal is a provider of IT and geoscience services to the global oil & gas industry. Since becoming a Norvestor portfolio company in January 2011, Cegal has transformed from a local IT services provider based in Stavanger, Norway, to a global market leader within its market niche operating from locations in Stavanger, Oslo, London, Aberdeen, Houston and Dubai. During the holding period Norvestor has worked closely with Cegal management in implementing a new growth strategy, executing a transformational add-on acquisition, securing external financing, international expansion and strengthening the management team and board of directors with relevant expertise.
Founded in 2000 in Stavanger, Norway, Cegal had established an attractive position within the Norwegian SME market, offering solutions for efficient and centralized IT services and operations. Cegal offered a strong entry point into the fast-growing managed IT market driven by an increase in outsourced IT services and IT complexity as well as demand for new applications. During due diligence, Norvestor identified Cegal as a solid platform for further expansion and consolidation with an attractive business model offering high levels of recurring revenue, a scalable technical platform and a high-quality management team.
Challenge and Our Approach
When Norvestor invested in January 2011, Cegal had an attractive position within the energy sector in Stavanger, specifically towards customers with geological and geophysical operations demanding advanced and customized solutions. Through due diligence and the strategic review following the acquisition, it became apparent that this market segment offered a significant untapped potential for Cegal to build a differentiated specialist position with international reach. Norvestor supported Cegal management in defining and implementing a new growth strategy, aiming to build a position as a leading cloud-based IT outsourcing partner for the industry through developing strong domain competence and a high value-added product portfolio. From 2013 onwards Cegal secured several large long-term contracts with oil & gas customers generating strong and profitable growth. In August 2014, Cegal acquired Blueback Reservoir, a fast-growing technology company specializing in providing geoscience consulting services and software solutions for the oil and gas industry, significantly strengthening Cegal’s technology offering, domain expertise and geographical footprint. In 2015, Cegal further expanded its position in the UK with the acquisition of Escape Business Technologies based in Aberdeen.
Since Norvestor’s investment in 2011, Cegal has scaled to more than five times its original size and taken a leading position internationally within its market niche. The Company is experiencing an all-time high interest for its services from an international customer base and has a revenue backlog in excess of NOK 1 bn.
«Working with Norvestor has enabled us to build self-confidence to make tough decisions, to focus and to realize our potential. They challenge us and work closely with us as a partner without undermining the management team’s authority»
Svein Torgersen, CEO of Cegal Group