HOUSTON, TX – Expro Group Holdings N.V., a provider of services in the oil and gas field, announced on Thursday a significant development in its acquisition of Coretrax, the England-based oilfield services company. The company has reached an amendment to the original stock purchase agreement, which sees the release of lock-up transfer restrictions on approximately 3.125 million shares and the conclusion of all true-up payments.
The initial acquisition agreement, dated February 13, 2024, involved a $75 million cash payment and 6.75 million shares of Expro Group's common stock. As part of the transaction, 500,000 shares were placed in escrow.
The recent amendment, signed on Wednesday, not only lifts the lock-up on the remaining shares but also directs the escrow agent to sell enough shares to generate $8 million in proceeds for the company. The rest of the escrow shares will be transferred back to the sellers.
This move comes after the first tranche of approximately 3.125 million shares was released from lock-up on July 5, 2024. The amendment effectively finalizes the terms of the acquisition, simplifying the ownership structure and resolving outstanding financial adjustments between Expro Group and the sellers.
The amendment is expected to provide Expro Group with additional liquidity and could potentially influence the company’s stock (NYSE:XPRO) performance. It also signifies the completion of the acquisition process, allowing Expro Group to fully integrate Coretrax's operations and resources.
This development is based on the latest SEC filing by Expro Group Holdings N.V.
In other recent news, Expro International Group Holdings Ltd. reported a strong Q2 2024 performance, exceeding its revenue and adjusted EBITDA guidance with $470 million and $95 million, respectively. The company has refined its full-year revenue guidance to between $1.7 billion and $1.75 billion, and adjusted EBITDA to between $350 million and $375 million, reflecting a positive outlook due to favorable market conditions in the energy services sector.
The acquisition of Coretrax is progressing well, with promising expectations for revenue synergies and future growth. Furthermore, technology investments such as the DeltaTek acquisition are enhancing operational efficiency and contributing to cost savings.
For Q3 2024, Expro forecasts revenue to be between $410 million and $430 million, with adjusted EBITDA ranging from $85 million to $95 million. However, a sequential decline of about 10% in Q3 2024 compared to Q2 is expected. Despite this, Expro sees growth opportunities in offshore development, deepwater TRS, and subsea landing stream-driven businesses.
These are the recent developments in the company.
InvestingPro Insights
As Expro Group Holdings N.V. (NYSE:XPRO) concludes its acquisition of Coretrax, investors may be considering the financial health and future prospects of the company. According to InvestingPro data, Expro Group has a market capitalization of $2.8 billion and has experienced a revenue growth of 14.65% over the last twelve months as of Q2 2024. This growth is complemented by a higher quarterly revenue growth of 18.32%, reflecting a positive trajectory in the company's earnings.
InvestingPro Tips suggest that Expro Group holds more cash than debt on its balance sheet, which is a sign of financial stability. Additionally, analysts predict the company will be profitable this year, which could be a significant turnaround considering the company was not profitable over the last twelve months. These factors, combined with the recent liquidity boost from the amendment to the Coretrax acquisition agreement, could influence the company's stock performance positively.
Investors interested in a deeper analysis can find additional InvestingPro Tips for Expro Group, which may further inform investment decisions. Use coupon code PRONEWS24 to get up to 10% off a yearly Pro and a yearly or biyearly Pro+ subscription, and gain access to valuable insights that could help navigate the complexities of the market.
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