Houston’s Oil States International said it will buy fracking technology company GEODynamics for $525 million to help stay ahead of North American energy trends.
The Houston oilfield services firm aims to take advantage of GEODynamics’ specialties at shale rock perforation technologies to better compete as the onshore oil and gas sector continues to expand with longer and deeper wells that include many more hydraulic fracturing, or fracking, stages.
Oil States said it’s buying GEODynamics with $300 million in cash and more than $200 million in its stock. GEODynamics, which is headquartered west of Fort Worth in Millsap, is backed financially by Houston private equity firm Lime Rock Partners.
GEODynamics counts more than 300 employees. The firm focuses on fracking services, but also offers tools and equipment throughout the life of the wells.
Oil States CEO Cindy Taylor said the GEODynamics deal represents a unique business opportunity.
“It offers meaningful growth potential that combines technology with downhole consumable completion solutions that are ideal for the current operating environment which is characterized by longer lateral lengths, increased frac stages and a growing number of perforation clusters which help enhance well productivity,” Taylor said.
The acquisition is expected to close in the first quarter of 2018.
This first appeared on the Houston Chronicle – an Energy Voice content partner. For more click here.