=Atwood Oceanics (ATW) to be acquired by Ensco plc (ESV) for $10.72/share

Atwood Oceanics  (ATW) to be acquired by Ensco plc (ESV) for approximately $10.72/share in stock :

Ensco plc (ESV) and Atwood Oceanics jointly announced today that they have entered into a definitive merger agreement under which Ensco will acquire Atwood in an all-stock transaction. The definitive merger agreement was unanimously approved by each company's board of directors.

• Under the terms of the merger agreement, Atwood shareholders will receive 1.60 shares of Ensco for each share of Atwood common stock for a total value of $10.72 per Atwood share based on Ensco's closing share price of $6.70 on 26 May 2017. This represents a premium of approximately 33% to Atwood's closing price on the same date. Upon close of the transaction, Ensco and Atwood shareholders will own approximately 69% and 31%, respectively, of the outstanding shares of Ensco plc. There are no financing conditions for this transaction.
• Ensco expects to realize annual pre-tax expense synergies of approximately $65 million for full year 2019 and beyond. The combination is expected to be accretive on a discounted cash flow basis.
• Ensco's executive management will continue with Carl Trowell as President and Chief Executive Officer, Carey Lowe as Executive Vice President and Chief Operating Officer, and Jon Baksht as Senior Vice President and Chief Financial Officer.

The estimated enterprise value of the combined company is $6.9 billion, based on the closing price of each company's shares on 26 May 2017. The combined company will have approximately $3.7 billion in revenue backlog.