Velosi, a provider of services to the oil and gas industry, has spent some £3.8 million buying majority shareholdings in K2 Specialist Services and Intec UK.

Velosi, a provider of services to the oil and gas industry, has spent some £3.8 million buying majority shareholdings in K2 Specialist Services and Intec UK.

The acquirer provides asset integrity – the ability to function whilst safeguarding life and the environment – and Health, Safety and Environment (HSE) services to oil and gas companies.

Velosi bought a 65% stake in Singapore-based K2 Specialist Services for SGD5.6 million (£1.9 million). The acquired firm provides inspection, testing, integrity management and engineering services to the oil and gas industry throughout Asia pacific, the Middle East and central Asia.

The deal amount comprises SGD2.80 million (£0.94 million) in cash and the remainder with the issue of new ordinary shares in Velosi. The shares will be issued in three tranches subject to the achievement of certain performance targets by K2 in the three financial years ending 31 December 2009.

A 60% stake in specialised recruitment firm Intec has also been purchased for up to £1.92 million. Intec also intends to subscribe for one million new ordinary shares in Velosi, raising £1.45 million. The proceeds could be used for acquisitions.

Intec is a recruitment firm in the aviation, engineering, construction, commercial and industrial, power and utilities, oil, gas and rail sectors.