Enersol to Acquire EV Holdings for $45 Million

ADNOC Drilling Company and Alpha Dhabi Holding on Monday announced that their joint venture Enersol has agreed to acquire a 100% equity stake in EV Holdings Ltd. (EV) for approximately $45 million from UK-based private equity firm, Dunedin.

Completion of the transaction is subject to obtaining the necessary regulatory approvals and closing adjustments, after which the EV stake will be formally transferred to Enersol, ADNOC said in a filing with the Abu Dhabi Securities Exchange (ADX) this morning.

EV, whose corporate headquarters in the US, is a leading global provider of vision based diagnostics and analytics services for the oil and gas sector. The company has a global footprint with a presence in 36 countries, including the UAE and Saudi Arabia.

EV provides well diagnostics services by leveraging a range of solutions that resolve highly complex wellbore issues across the well lifecycle.

In the FY 2024, EV has delivered strong financial performance, with revenue over $30 million, supported by a significant contribution from the Middle East and North Africa (MENA) region. It also delivered a robust EBITDA margin, and is expected to yield free cash flow of more than 10% going forward.

EV’s attractive operational and financial profile is aligned with Enersol’s acquisition strategy. The acquisition serves as an additional milestone in building Enersol’s next-generation technology ecosystem, which will present Enersol with an additional avenue for growth across untapped markets as well as further upside potential in the long-term.

A market-leading platform enabled by AI, EV’s specialised well diagnostic solutions are offered through market-leading 360 degree downhole cameras, integrated camera-ultrasound technology and other tools that generate vivid and visual diagnostic information to enable the rapid and effective evaluation of technically challenging well issues.

EV has also developed AIVA, a tool agnostic cloud-based data storage, visualisation platform including through the application of AI and machine learning techniques to accelerate data transfer, storage and analysis.

By leveraging the EV Technology Centre dedicated to research and development in the UK, EV is home to 116 patents and has a successful track record of bringing new and innovative products to market.

Over the next two years, EV is targeting the introduction of a strong pipeline of products on account of its R&D capabilities, including pipeline visualisation and software analytics.

Meanwhile, ADNOC Drilling, which announced the financial results for the second quarter and first half of 2024, said that the revenue increased to $935 million and more than $1.8 billion, up y-o-y by 29% and 26% respectively. This growth has been driven by the expansion of operations across all business segments.

Third Acquisition

This is Enersol’s third acquisition, having last week signed an agreement to acquire 51% of NTS Amega (NTS), a leading global manufacturer of advanced precision equipment and solutions provider for the energy sector, subject to customary and regulatory approvals.

Enersol also has agreed to acquire an additional stake (to a total 67.2% majority) in Gordon Technologies, a US-based provider of measurement while drilling services.

Enersol is actively advancing plans to acquire and invest in multiple businesses and foster a scalable ecosystem that will enhance market value and position the JV as a technology-centric investment platform to the energy sector.