Dril-Quip has finalised its previously announced merger with rival American oilfield service company Innovex Downhole Solutions to form a new entity called Innovex International.
The all-stock deal, announced in March 2024, is aimed at creating a unique energy industrial platform with over $1bn in annual revenue.
The newly merged company will be headquartered in Houston, Texas, and will begin trading on the New York Stock Exchange (NYSE) under the ticker symbol “INVX.”
Innovex Downhole Solutions, based in Texas, has been providing services to the upstream sector across both onshore and offshore locations globally. The company specialises in the design, manufacture, and implementation of key solutions for drilling, deployment, well construction, completion, production, as well as fishing and intervention operations.
Dril-Quip, listed on the NYSE prior to the merger, focuses on the development, manufacturing, and supply of advanced equipment and services for the global oil and gas industry, encompassing both offshore and onshore sectors.
As a result of the merger, Dril-Quip’s common stock ceased trading on the NYSE under the ticker symbol “DRQ” at the close of trading on 6 September 2024.
Adam Anderson, CEO of Innovex Downhole Solutions, will take on the same role at Innovex International.
Anderson said: “We’re thrilled to complete the Innovex and Dril-Quip merger, creating a differentiated business with a curated portfolio of technologies that support our customers throughout the well’s lifecycle.
“I’d like to thank the employees of our combined company for all they have done to bring us to this milestone. Leveraging our talent and ‘No Barriers’ culture, we will deliver superior growth, cash flow and returns creating value for our employees and our shareholders.”
Innovex International’s portfolio covers the entire lifecycle of the well.
According to Innovex International, the integration of innovative products allows for seamless transitions between different well phases, enhancing efficiency, reducing costs, and minimising the service footprint on rig sites.
In the enlarged company, Dril-Quip’s shareholders will hold approximately 52% ownership, while Innovex Downhole Solutions’ shareholders will own around 48%, based on fully diluted shares.
It is projected that roughly 56% of the revenue for Innovex International will be generated from international and offshore markets, with the remaining 44% coming from onshore markets in the US and Canada.
