Seadrill Limited has signed a deal to acquire Aquadrill in an all-stock transaction worth $985 million. Upon completion of the transaction, Seadrill shareholders and Aquadrill unitholders will own 62 percent and 38 percent, respectively, of the outstanding common shares in the company.
The combination creates an industry-leading offshore drilling company, with a modern and high-specification fleet and a streamlined cost structure. The new company will be well-placed to realize estimated annual run rate synergies of at least $70 million.
It will also be well-positioned for further growth given its stronger credit and liquidity profile, and to provide attractive cash flows.
“At Seadrill we seek to deliver safe and effective operations as the bedrock for generating returns for our shareholders. Seadrill and Aquadrill have a long and rich strategic and operational management history. Our shared heritage will promote the efficient integration of the two companies. I look forward to welcoming the Aquadrill fleet back into the Seadrill family,” Simon Johnson, Seadrill’s President and Chief Executive Officer, said.
The transaction has been approved by the Boards of Directors of both Seadrill and Aquadrill. The required approval of Aquadrill’s unitholders has also been obtained. The transaction is, however, subject to applicable regulatory approvals and other customary conditions, and is expected to close in mid-2023.
The combination of the two companies positions them to better serve a broader range of customers, with one of the youngest and most technologically advanced fleets in the industry, and a combined backlog of $2.8 billion.
The company will own 12 floaters (including seven 7th-generation drillships), three harsh environment rigs, four benign jack-ups, and three tender-assisted rigs. Additionally, seven rigs will be managed under a variety of strategic partnerships.
The company will remain named Seadrill Limited and will continue to be domiciled in Hamilton, Bermuda. Julie Robertson and Simon Johnson will continue in their respective roles as Chair of the Board of Directors, and President and Chief Executive Officer.
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