Looking for oil investing news? Look no further, you’ve come to the right place! On Monday, Nabors Industries Ltd. (NYSE:$NBR) announced that it has agreed to acquire Tesco Corp. (NASDAQ:$TESO) in an all-stock deal. Under the terms of the acquisition, the transaction values Teso common stock at $4.62 per share.

Elaborating further, Nabors noted that each outstanding Tesco share will be exchanged for 0.68 common shares of Nabors. The deal price for the acquisition represents a 19% premium of the closing value of Tesco shares on August 11, 2017.

Here’s What You Need to Know:

According to Tesco, the transaction value represents a 30% premium to its enterprise value. Keep in mind this is based on Tesco’s cash balance as of June 30. After the acquisition has been finalized, Tesco shareholders will own roughly 10% of the outstanding shares of Nabors Industries, an operator of drilling rig fleet. Under the terms of the deal. Canrig – which is Nabors rig equipment subsidiary – will be integrated with Tesco’s rig equipment manufacturing, rental and aftermarket service business.

Additionally, Teso is in charge of a tubular services business in numerous key regions worldwide, which will benefit Nabors Drilling Solutions’ operation.

The transaction is well on its way, as it has been approved by the boards of directors of both companies. However it still has to be approved by Tesco shareholders.

When asked about the transaction, Michael Sutherlin, Tesco’s Non-Executive Chairman of the Board, said: “With this transaction, Tesco will now have an expanded platform, which will allow for acceleration of its strategy and increase the potential for market share gains around key industry trends. The combination will provide significant value to Teso shareholders by participating in a stronger and broader offering of complementary rig equipment product lines and tubular services.”

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