French subsea oil contractor Technip has agreed to buy Global Industries (NASDAQ:GLBL) for $937 million in cash in an effort to broaden its underwater oil business.
The total purchase price, including debt, values the U.S. provider of offshore construction and engineering services at about $1.07 billion.
Technip said the acquisition reinforces its leadership in the fast-growing subsea market. The company expects the transaction to provide at least $30 million in synergies and expand its addressable market by about 30%.
The price, at $8 a share, represents a premium of 55% to Globals closing price on Sept. 9, the last day of trading before the deal was made public.
Global has 14 vessels and strategic geographic positions in the Gulf of Mexico, Middle East and Asia Pacific. The merger of our two companies will provide our customers with an unrivaled execution capability, combining Technip's leading, integrated subsea capabilities with Global's G1200 and G1201, complementary market presence and skills and know-how in S-Lay and heavy lift, Global CEO John Reed said in a statement.
The transaction is expected to be completed early next year, pending customary closing conditions and approval from Global shareholders.