Dubai Career Diary

In a significant move, Enersol, a joint venture between ADNOC Drilling and Alpha Dhabi Holding, has agreed to acquire an additional 42.206% equity stake in Gordon Technologies, a leading provider of measurement while drilling (MWD) technology, for approximately $270 million.

This investment increases Enersol’s total stake in Gordon Technologies to 67.2%, making it the majority stakeholder. The acquisition is expected to be economically accretive to Enersol, enhancing its profitability, valuation multiple, cash flow generation, and dividend potential.

Gordon Technologies, based in Louisiana, has established its Abu Dhabi business and is set to commence field operations in the MENA region in Q2 2024. The company’s MWD technology measures key information near the drill bit and transmits data to the surface without interrupting normal drilling operations.

The acquisition is subject to customary regulatory approvals and closing adjustments. Approximately 80% of the consideration will be funded upon closing, with the remaining amount expected to be paid over the next two years, subject to certain performance conditions.

Gordon Technologies is a debt-free company, and its acquisition is expected to have a positive impact on Enersol’s financial performance. The company is one of the industry’s leading fully-integrated MWD providers, with a large fleet of modern MWD systems, enabling operators to achieve performance and reliability in various applications.

Enersol’s investment in Gordon Technologies is part of its strategy to expand its presence in the oil and gas industry through strategic acquisitions and investments. The company has filed with the Abu Dhabi Securities Exchange (ADX), outlining its plans to acquire and invest in multiple businesses.

This acquisition is a significant step forward for Enersol, solidifying its position in the oil and gas industry and paving the way for future growth and expansion.