Enersol, a joint venture (JV) between ADNOC Drilling and Alpha Dhabi, has entered into an agreement to acquire a 95% equity stake in Deep Well Services (DWS) for approximately $223m (Dh818.97m), inclusive of performance-based payments.
The transaction's completion is contingent upon securing necessary regulatory approvals and meeting other standard conditions.
Founded in the US in 2008, DWS is a provider of advanced technologies and services within the energy sector.
The company's patented Hydraulic Completion Units (HCU) are complemented by its data analytics software, BoreSite, and accredited training programmes that aim to boost safety and efficiency in operations.
DWS' innovative JV, AutoSep Technologies, is dedicated to automating flowback operations.
Through the acquisition by Enersol, DWS is expected to contribute significantly to the development of the UAE's energy resources.
Enersol intends to leverage DWS' technologies to support ADNOC Drilling's recent $1.7bn contract to deliver 144 unconventional wells to the ADNOC Group.
For the full year 2023, DWS reported strong financial results, with revenues exceeding $205m, a robust EBITDA (earnings before interest, taxes, depreciation and amortisation) margin, and an anticipated free cash flow of more than 10%.
This financial and operational strength aligns with Enersol's strategy to build a scalable portfolio through strategic acquisitions.
The acquisition is a strategic move for Enersol, marking its fourth significant investment. It follows the pending acquisitions of EV, a downhole visual analytics company, and a 67% stake in Gordon Technologies, a provider of measurement while drilling services.
Enersol also recently agreed to acquire a 51% stake in NTS AMEGA, a precision equipment manufacturer for the energy sector, for $58m. The transaction excluded transaction fees, expenses and completion adjustments, positioning Enersol as the majority equity holder of NTS.
Alpha Dhabi acquired a 51% equity stake in NTS in October 2023, which Enersol agreed to purchase at the same valuation.
