Paradigm Geophysical BV is returning to Nasdaq. Yesterday, the company, once run by Israeli Eldad Weiss, filed a prospectus with the US Securities and Exchange Commission (SEC) to raise up to $200 million, but did not disclose how many shares it will issue. Fox Paine and Company LLC told “Globes” that the company value for the offering would be up to $500 million. Lehman Brothers, UBS, and Bank of America will be the lead underwriters.
Fox Paine, controlled by CEO Saul Fox, acquired Paradigm Geophysical four years ago and delisted it from Nasdaq.
Paradigm Geophysical develops software for oil and gas exploration, by creating3D images of strata to locate deposits. The company fell into financial difficulties in 2001, causing its share to plummet 70%. Fox Paine acquired the company in mid-2002 for $100 million, and delisted it. The company is now registered in the Cayman Islands. Its subsidiaries include Earth Decision, acquired a few months ago.
In its prospectus, Paradigm Geophysical said it posted a net profit of $400,000 for the second quarter of 2006, after several years of losses. The company posted earnings before interest, taxes, depreciation and amortization (EBITDA) of $17 million on $100 million revenue in 2005. It posted $62 million revenue in the first half of 2006.
Published by Globes [online], Israel business news - www.globes.co.il - on September 21, 2006
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