Pure Positioning AB (publ) acquires AB DI Tech Drilling Energy

Strategic acquisition

DI Tech has a strong relationship with SveBorr, which has already been acquired by PPAB. The acquisition is of great strategic value for PPAB in its efforts to consolidate the industry.

- DI Tech is an important piece of the puzzle for PPAB to get in place. The company is run by a very skilled professional and the acquisition confirms PPAB's status as the most offensive player in Scandinavia within geothermal energy, says the Board of Directors of Pure Positioning

DI Tech was founded in 2014 and is run by Dan Inge Fäldt, who has 15 years of experience in the industry as a hired driller for other contractors. The company also has the ability to lift in work equipment, which minimizes the impact on nearby environments. The operations are based in Vårgårda and work in Västra Götaland, Bohuslän and Halland.

See the company website for more information: https://www.abditech.se

Geothermal energy

Geothermal energy is heat extracted from the earth's interior, a renewable and emission-free energy source that can be used for heating, cooling and producing electricity. The source of this heat is both residual heat from the formation of the earth and the energy from the radioactive decay of minerals in the earth's crust. The heat can be extracted from relatively shallow layers in the ground via heat pumps, or from deeper reservoirs of hot water and steam, which are used for to drive turbines in geothermal power plants.

The market for geothermal energy in the Nordics is currently worth several billion, but at the same time in the early stages with enormous potential. Sweden has an active market for low-temperature geothermal energy, especially in the form of ground-source heat pumps. PPAB aims to consolidate existing operations, and then drill deeper, among other things by utilising Norwegian deep drilling expertise from the oil and gas industry.

The transaction

The transaction is based on similar valuation principles as the acqusition of SveBorr. The sellers of DiTech have entered into a 36-months lockup agreement for the shares being issued.