Rockwell Automation and Schlumberger announced that they have entered into an agreement to create a new joint venture, Sensia, an integrated digital oilfield automation solutions provider.
The transaction is expected to close, and the joint venture is expected to begin serving customers, in the summer of 2019, subject to regulatory approvals and other customary conditions.
The Sensia joint venture will be an integrated provider of measurement solutions, domain expertise, and automation to the oil and gas industry. It will offer scalable, cloud and edge-enabled process automation, including information and process safety solutions ranging from intelligent systems to engineered life-cycle management automation solutions. The joint venture is designed to help its customers to further drive efficiency gains through measurement and data driven intelligent automation.
Under the terms of the agreement, Sensia will operate as an independent entity, with Rockwell Automation owning 53 percent and Schlumberger owning 47 percent of the joint venture. Sensia is expected to generate annual revenue of $400 million and will employ approximately 1,000 persons serving customers in over 80 countries, with global headquarters in Houston, Texas. The management team will be led by Allan Rentcome, who will serve as Chief Executive Officer. He is currently Director Global Technology - Systems and Solutions Business at Rockwell Automation.
As part of the transaction, Rockwell Automation will make a $250 million payment to Schlumberger at closing, which will be funded by cash on hand. Following this investment, Rockwell Automation will maintain its financial flexibility and continue to support its capital allocation priorities, including organic growth and acquisitions, dividends, and share repurchases.