The acquisition is clearly accretive and strategically complementary, adding high-margin completion tools and services. The 6-month lock-up on seller shares limits near-term overhang. Monitor Q3 2026 closing and any integration updates. The ~13% EPS accretion and 14% ROCE support a positive re-rating if execution holds.
Price Chart
Executive Summary
Innovex International entered into a Share Purchase Agreement to acquire TCO Group AS for approximately $95 million, consisting of $65 million in cash and $30 million in newly issued common stock (~1,063,829 shares at ~$28.20/share). TCO Group generated $70 million in revenue, $12 million net income, and $18 million Adjusted EBITDA in FY2025. The transaction is expected to close early Q3 2026 and is projected to be ~13% accretive to Innovex's EPS with a 14% Transaction ROCE.
Key Financial Metrics
Key Facts
- Acquisition of TCO Group AS for ~$95M ($65M cash + $30M stock)
- TCO Group FY2025 revenue: ~$70M, net income: ~$12M, Adjusted EBITDA: ~$18M (25% margin)
- Transaction expected to be ~13% accretive to Innovex EPS (pro forma)
- 14% Transaction ROCE based on TCO's 2025 operating income less tax
- Seller locked up for 6 months post-closing on the ~1,063,829 Consideration Shares
- Closing expected early Q3 2026, subject to customary conditions
Financial Impact
~$95M total purchase price; ~1.5% dilution from 1,063,829 new shares vs ~69M basic shares outstanding; ~13% EPS accretion
Risk Factors
- Integration risk and potential cost overruns
- Currency risk (NOK-denominated target, USD acquirer)
- Oil & gas cyclicality could pressure TCO's revenue post-acquisition
- Customary closing conditions may delay or prevent close
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 4 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0001193125-26-270295 |
| Document: 0001193125-26-270295-index-headers.html | 0001193125-26-270295 |
| Document: 0001193125-26-270295-index.html | 0001193125-26-270295 |
| Document: 0001193125-26-270295.txt | 0001193125-26-270295 |
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Aug 10, 2026 7w ago | Insider Cluster | $30.14 $29.84 | ▲ +1.00% | ▼ −0.06% | $27.31 (+9.39%) |
Jun 15, 2026 15w ago | 8-K | $28.17 $25.50 | ▼ −9.48% | ▼ −8.73% | $27.31 (−3.05%) |
May 4, 2026 21w ago | 8-K | $26.68 $28.04 | ▲ +5.10% | ▲ +0.14% | $27.31 (+2.36%) |
Mar 27, 2026 27w ago | DEFA14A | $24.25 $28.15 | ▲ +16.08% | ▲ +3.49% | $27.31 (+12.62%) |
Mar 11, 2026 29w ago | 8-K | $24.13 $26.51 | ▲ +9.86% | ▲ +7.89% | $27.31 (+13.18%) |
Feb 24, 2026 31w ago | Insider Cluster | $28.90 $24.73 | ▲ +14.43% | ▲ +9.44% | $27.31 (+5.50%) |
Feb 24, 2026 31w ago | Insider Cluster | $28.90 $24.73 | ▲ +14.43% | ▲ +9.44% | $27.31 (+5.50%) |
US Market Status
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