Onshore and offshore drilling contractor, Nabors Industries (NYSE:NBR) has agreed to pay $900 million to acquire Superior Well Services (NASDAQ:SWSI) in a definitive merger agreement.
Under the terms of the agreement, Nabors will commence a tender offer for all of the Superior outstanding shares at a common stock price of $22.12 cash per share.
Headquartered in Pennsylvania, the heart of the Marcellus Shale, Superior is a US-focused oilfield services company that provides technical pumping and downhole surveying services. Superior has a special focus on shale-gas service work, including hydraulic facture stimulation.
Nabors owns and operates 542 land drilling rigs and 730 land workover and well service rigs in North America, as well as 40 platform rigs, 13 jackups and three barge rigs offshore.
“Superior Well Services' broad U.S. presence complements that of both our U.S. Land Drilling and Well-servicing operations and augments our expansion into areas such as the Marcellus shale region,” said Gene Isenberg, Nabor’s chairman and CEO.
The holders of 34 percent of Superior’s outstanding shares of common stock have agreed to sell their shares.
“This complementary combination of the largest land drilling contractor in the world with a leader in technical pumping will make both organizations stronger and better able to meet our customers' needs not only in the U.S., but around the world,” commented David Wallace, chairman and CEO of Superior.
The acquisition is expected to be completed by the end of the third quarter of 2010.
