Transocean to acquire Valaris, forming 73-rig high-spec offshore fleet

Transocean signed a definitive agreement to acquire Valaris in an all-stock transaction valued at approximately $5.8 billion. The combination will result in a pro forma fleet of 73 offshore drilling rigs, including 33 ultra-deepwater drillships, nine semisubmersibles and 31 modern jackups.

On a pro forma basis, the combined company will have an estimated enterprise value of about $17 billion and a contract backlog of approximately $10 billion. Transocean identified more than $200 million in incremental cost synergies related to the transaction, in addition to its existing cost-reduction program, which is expected to deliver more than $250 million in aggregate savings through 2026.

Following completion, Transocean will remain incorporated in Switzerland with its primary administrative office in Houston. The combined company will be led by Transocean President and CEO Keelan Adamson, with Jeremy Thigpen serving as Executive Chairman of the Board.