Weatherford is acquiring NCS Multistage Holdings in a cash-and-stock deal announced 1 June.
The deal, reported by Seeking Alpha as being valued at $151 million, has been approved by the boards of both companies. Weatherford and NCS said in news releases on 1 June that NCS shareholders could receive either Weatherford common stock or a combination of Weatherford common stock and cash. On a blended basis, this is expected to be the equivalent of 0.463 shares of Weatherford common stock for each NCS Multistage share with up to 19.99% of this payable in cash.
In a message to Weatherford employees, company CEO Girish Saligram said the deal is a strategic investment in Weatherford’s long‑term strategy and reinforces the company’s focus on differentiated technology, disciplined execution, and value creation. With the purchase, Weatherford gains access to NCS Multistage’s technologies for oil and gas well completions optimization.
Saligram said the combination is expected to expand the company’s well completions offerings, deepen Weatherford’s capabilities in unconventional reservoirs, support the delivery of technology-enabled solutions that improve operational and production outcomes, and provide an avenue for further growth of NCS Multistage’s portfolio by leveraging Weatherford’s international footprint.
In a news release, Saligram called the acquisition of NCS a natural complement to Weatherford’s completions strategy.
“NCS Multistage's technology is expected to enhance our ability to serve customers across the completion life cycle, from well design through production optimization and late-life interventions, while deepening our exposure to the growing unconventional resource market,” he said.
NCS Multistage CEO Ryan Hummer said in the release the deal positions the business for a new phase of growth.
“This combination creates an opportunity for our products, technology, and people to reach a broader set of customers and markets faster than we could on our own, supported by Weatherford’s financial strength and international footprint, providing long-term opportunity and value for our stakeholders,” Hummer said.
The transaction, subject to closing conditions and regulatory approvals, is expected to close later this year. Weatherford said it expects to realize annual cost synergies of at least $15 million within 18 months of closing.