HOUSTON - Drilling Tools International Corp. (NASDAQ: DTI), a global oilfield services provider, has announced the completion of its acquisition of European Drilling Projects (EDP), a firm known for its advanced drilling technology. The transaction, which aims to enhance DTI's technological offerings and global reach, was finalized today, with the terms remaining undisclosed.
EDP, established in 2004, specializes in creating innovative tools for the directional drilling market, including the Fixedblade® stabilizer, which is designed to overcome limitations of traditional equipment and improve drilling performance. The acquisition is expected to complement DTI's existing Drill-N-Ream® technology and strengthen its competitive position in the industry.
DTI's CEO, Wayne Prejean, expressed confidence that the integration of EDP's technology and expertise would bolster DTI's strategy for international growth and technological advancement. He welcomed the EDP team, acknowledging the founders' visionary work and expressing enthusiasm for the potential synergy between the two companies.
Tom Newman, co-founder of EDP, echoed Prejean's sentiments, highlighting the shared vision for innovation and excellence in the upstream oil and gas market. He emphasized the significance of the partnership with DTI and its potential to drive further advancements in drilling technology.
Based in Houston, Texas, DTI manufactures and rents downhole drilling tools and has a presence across North America with additional international service centers in the EMEA and APAC regions.
The acquisition of EDP by DTI promises to deliver enhanced drilling solutions to the oil and gas industry, as DTI leverages EDP's technological innovations and market presence in the Eastern Hemisphere. This strategic move is part of DTI's ongoing efforts to remain a market leader and innovator in the sector.
This news is based on a press release statement.
In other recent news, Superior Drilling Products (NYSE:SDPI), a well-known designer and manufacturer of drilling tool technologies, has announced that its shareholders have voted in favor of the company's acquisition by Drilling Tools International Corporation. The vote saw more than 99% approval, representing about 77% of Superior Drilling's outstanding shares. This development marks a significant step towards the completion of the merger, which is expected to finalize on August 1, 2024. Post-merger, Superior Drilling's common stock will be delisted from public markets.
In addition to the merger, Drilling Tools International has made significant strides, including securing $105 million in financing and its impending inclusion in several Russell indexes. The financing was achieved through an amendment to its existing credit facility with PNC Business Credit and a new term loan. This financial boost is intended to support the company's growth initiatives and international expansion.
These are recent developments that reflect the ongoing changes in the industry and the companies' strategies. The merger is still subject to regulatory approvals and other customary closing conditions.
InvestingPro Insights
As Drilling Tools International Corp. (NASDAQ: DTI) expands its global footprint with the acquisition of European Drilling Projects, investors may find additional context from InvestingPro's real-time data and insights.
DTI's market capitalization stands at $126.33 million, reflecting its position as a niche player in the oilfield services sector. The company's P/E ratio of 10.83 suggests that it may be undervalued compared to industry peers, potentially making it an attractive option for value investors following this strategic acquisition.
InvestingPro Tips highlight that DTI's stock price often moves in the opposite direction of the market, which could be of interest to investors looking for portfolio diversification. Additionally, the company has been profitable over the last twelve months, with a gross profit margin of 75.81% for the same period, indicating strong operational efficiency.
However, it's worth noting that DTI's revenue growth has been negative, with a -2.69% decline in the last twelve months. This context makes the acquisition of EDP particularly significant, as it may help DTI reverse this trend by expanding its technological offerings and market reach.
For investors seeking a deeper understanding of DTI's financial health and growth prospects, InvestingPro offers 8 additional tips, providing a more comprehensive analysis to inform investment decisions.
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