Pason Systems has increased its noncontrolling investment in Intelligent Wellhead Systems (IWS) through the acquisition of outstanding common shares of IWS for an aggregate purchase price of $7.9 million and an agreement to invest up to $25 million in preferred shares of IWS.
The preferred share investment consists of an initial subscription of $10 million, with up to a further $15 million in future tranches of preferred shares subject to the continued growth and success of IWS. These funds will support IWS’ ongoing growth initiatives and accelerate the development and deployment of IWS’ technologies.
“We remain encouraged and excited about IWS’ team, technologies, and growth prospects,” said Jon Faber, Pason’s president and CEO. “As we’ve experienced within our core drilling-related business, customer demands and requirements for high-quality data continue to increase in the completions sector.
“IWS is well positioned to support operators with these increasing needs. As an example, IWS’ InVision Technology Platform has gained traction while enabling automated valve management processes for continuous frac operations in a safe and efficient manner, increasing the number of frac stages per day for several operators. Over the past year, IWS has seen strong growth in the adoption of its technologies, and we expect this additional capital will accelerate IWS’ ongoing growth.”