Summary
- Nine Energy has announced a deal to acquire Magnum Oil Tools for $493 million plus contingent earnouts.
- Magnum has developed a range of oil & gas well downhole tools and technologies.
- NINE's acquisition will require additional debt but provide the firm with extensive and labor-saving toolsets for the highly competitive fracking service industry.
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Quick Take
Nine Energy Service (NINE) announced it has agreed to acquire Magnum Oil Tools International for $493 million.
Magnum Oil Tools operates as an oil & gas downhole technology provider.
NINE is acquiring technologies that will diversify its offerings while reducing labor requirements in a tight and expensive labor environment.
