CALGARY - U.S.-based Ion Geophysical Corp. (NYSE:IO) has agreed to buy privately held seismic testing technology provider Aram Systems Ltd. of Calgary for $350 million.

Ion Geophysical, a Houston-based providers of geophysical technology to oil companies, said the acquisition will allow it to expand its reach in the cable-based land seismic recording systems business.

The deal was expected to be earnings neutral for the rest of 2008 and accretive to Ion's consolidated pro-forma earnings in 2009.

"From a starting position as a low cost, niche player in the land systems business, Aram has firmly established itself as a major player in the analog segment of the market," Ion president and CEO Bob Peebler said in a statement.

"We believe the scope and scale of the combined entity will offer our customers expanded and accelerated access to a broader range of instrumentation options and enable our consolidated land businesses to grow more rapidly and deliver bottom-line results more effectively than either company could on its own."

Ion will pay US$275 million of the purchase price in cash and the rest in shares.

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