Weatherford to Acquire NCS Multistage, Offering Stock and Cash; $15M Synergies Expected
NCSM sits 48% above its 52-week low of $28.64 on light trading volume (0.4× avg).
Summary
Weatherford International has announced a definitive agreement to acquire NCS Multistage Holdings. NCSM stockholders will have the option to receive Weatherford common stock or a combination of stock and cash. Weatherford anticipates realizing at least $15 million in annual run-rate cost synergies within 18 months. This follows 425 filings by Weatherford earlier today confirming the acquisition. This transaction fundamentally changes the investment thesis for NCS Multistage, providing an exit for shareholders and expanding Weatherford's market presence in completions.
At the time of this announcement, NCSM was trading at $42.50 on NASDAQ in the Energy & Transportation sector, with a market capitalization of approximately $111.2M. The 52-week trading range was $28.64 to $87.36. This news item was assessed with positive market sentiment and an importance score of 10 out of 10. Source: Reuters.