SINGAPORE (June 8): Sembcorp Marine is acquiring the intellectual property rights of Norway’s Sevan Marine for US$28 million ($37.4 million) in cash.

In a filing this morning, SembMarine says the acquisition should resolve the long-standing dispute over infringement of each other’s IP.

Sevan Marine, which is listed on the Oslo Bourse, specialises in the design, engineering and project execution of floating units for offshore applications.

Their main product is a cylindrical platform used for floating production and drilling.

Subsidiary Sembcorp Marine Integrated Yard (SMIY), has entered into a sale and purchase agreement with Sevan Marine for the acquisition of the latter’s interests and title to all its intellectual property; the acquisition of a 95% stake in HiLoad LNG AS, a Sevan Marine subsidiary which holds certain intellectual property rights; the takeover of all operating and associated costs, including unexpired leases, in maintaining Sevan Marine's three office locations; and the transfer of 26 Sevan Marine employees.

SMIY will also take over some of Sevan Marine’s existing service contracts and provide engineering services to some of Sevan’s existing contract partners which have outstanding licence fees payable to Sevan Marine.

The litigation between Sembcorp Marine and Sevan Marine in the US Courts over the infringement of intellectual property rights of Sembcorp Marine will be terminated subject to completion.

The sale and purchase of the assets are subject to the approval of shareholders of Sevan Marine and the consent of certain third parties.

Following the acquisition, HiLoad will become a subsidiary of SMIY.

“Sembcorp Marine will be well placed with a suite of intellectual properties and knowledge to execute leading-edge design and engineering solutions for the global offshore and marine sectors,” says the group, “This puts the Company in a better position to offer alternative solutions to customers and partners.”

Shares in Sembcorp Marine closed 2 cents higher at $2.10 on Thursday.