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US conglomerate General Electric (GE) has agreed to buy British oil services group Sondex in a £288.7 million deal.

Under the terms of the cash offer GE will pay Sondex investors 460p per share for their stock.

The company, which is based in Hampshire, designs and manufactures electro-mechanical based equipment to oilfield service companies.

Employing over 500 staff across nine countries, Sondex bosses say the company has "grown significantly" since it was first floated on the London Stock Exchange in June 2003.

The company's directors intend to unanimously recommend the takeover bid made by GE's subsidiary, Drilling and Wireline Solutions Ltd (DWSL).

Commenting on the planned sale, Sondex chief executive Martin Perry said: "The acquisition of Sondex by DWSL is an exciting move for our company and employees.

Following the completion of the takeover Sondex will operate as part of GE Energy's optimisation and control business.

"With GE Energy, we will have greater resources to further develop innovative new technologies and we will be able to provide an enhanced level of global support to our customers," Mr Perry added.

GE said that Sondex would be an "important addition" to GE Energy's portfolio of businesses.

"The company brings to us a broad range of advanced products and technologies, as well as employees with a deep understanding of the customers they serve," said Brian Palmer, vice president of GE Energy's optimisation and control business.

News that GE is to acquire Sondex follows reports that the US giant has joined forces with investment bank Goldman Sachs as part of a £4 billion bid for Southern Water.

The Sunday Telegraph claimed yesterday that the US group, which has a wide range of business interests across the media, technology and financial services sectors, is part of a consortium battling to takeover the water firm.