Seadrill acquires Aquadrill in merger agreement

Seadrill and Aquadrill have entered into a definitive merger agreement under which Seadrill will acquire Aquadrill in an all-stock transaction. Upon completion of the transaction, Seadrill shareholders and Aquadrill unitholders will own 62% and 38%, respectively, of the outstanding common shares in the company. The transaction values Aquadrill at an implied equity value of approximately $958 million.

Seadrill said in a statement that the combined company expects to realize estimated annual run rate synergies of at least $70 million.

“Seadrill and Aquadrill have a long and rich strategic and operational management history. Our shared heritage will promote efficient integration of the two companies. I look forward to welcoming the Aquadrill fleet back into the Seadrill family,” said Simon Johnson, Seadrill President and CEO.

“We believe this combination will create the most value for our shareholders and will create an excellent platform for high quality service delivery to our customers,” said Steven Newman, Aquadrill CEO.