Halliburton To Buy Rival Oil Field Services Provider Baker Hughes - Quick Facts

(RTTNews) - Halliburton Co. (HAL) has agreed to acquire all the outstanding shares of Baker Hughes Inc. (BHI) in a stock and cash deal, valued at $78.62 per Baker Hughes share, representing an equity value of $34.6 billion and enterprise value of $38.0 billion, based on Halliburton's closing price on November 12, 2014, the day prior to public confirmation by Baker Hughes that it was in talks with Halliburton regarding a transaction. Upon completion, Baker Hughes stockholders would hold nearly 36 percent of the combined company. The agreement has been unanimously approved by the boards of both the companies.

Pursuant to the definitive agreement, Baker Hughes' stockholders would receive a fixed exchange ratio of 1.12 Halliburton shares plus $19.00 in cash for each Baker Hughes share. The value of the merger consideration as of November 12, 2014 represents 8.1 times current consensus 2014 EBITDA estimates and 7.2 times current consensus 2015 EBITDA estimates. The transaction value represents a premium of 40.8 percent to the stock price of Baker Hughes on October 10, 2014, the day prior to Halliburton's initial offer to Baker Hughes. And over longer time periods, this represents a one year, three year and five year premium of 36.3 percent, 34.5 percent, and 25.9 percent, respectively.

Halliburton plans to finance the cash portion of the transaction via. a combination of cash on hand and fully committed debt financing. The transaction combines two highly complementary suites of products and services into a comprehensive offering to oil and natural gas customers. On a pro-forma basis, the combined company recorded 2013 revenues of $51.8 billion, over 136,000 employees and operations in more than 80 countries worldwide.

The transaction may close in the second half of 2015.