Flotek Industries Inc., Houston, (NYSE: FTK) plans to acquire Teledrift Inc., Oklahoma City, for approximately $95.2 million.
Teledrift manufacturers wireless survey and measurement-while-drilling (MWD) tools, which it offers via rental primarily in North and South America and Australia.
Flotek chairman and chief executive Jerry D. Dumas Sr. says, “We believe that Teledrift’s unique products and design expertise, when used in conjunction with Flotek's highly successful downhole motor, will continue to expand and differentiate the capabilities of Flotek's downhole tool group…One of our core strategic objectives has been to increase the size and technical capability of our downhole tool group to complement our growing specialty chemicals business. We believe the acquisition of Teledrift will help us accomplish this.”
Flotek expects to finance the acquisition with proceeds from a public offering of $100 million of senior convertible notes due in 2028. The deal is expected to close by the end of February.
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