Ensco to buy Atwood Oceanics for $10.72/share in all-stock deal

|About: Atwood Oceanics Inc. (ATW)|By:, SA News Editor

Ensco (NYSE:ESV) agrees to acquire offshore drilling peer Atwood Oceanics (NYSE:ATW) in an all-stock transaction.

ATW shareholders will receive 1.6 ESV shares for each ATW share for $10.72/share based on ESV’s closing share price of $6.70 on May 26, a ~33% premium to ATW’s closing price on the same date.

ESV says it expects to realize $65M in annual pre-tax expense synergies for FY 2019 and beyond.

ESV says the deal will add six ultra-deepwater floaters, including four of the most capable drillships in the industry, and five high-specification jackups; the combined company will have a fleet of 63 rigs and a customer base of 27 oil companies.

ESV estimates the enterprise value of the combined company at $6.9B, and the combined company will have $3.7B in revenue backlog.

Subscribe for full text news in your inbox