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David Cote-backed CompoSecure to make $5 billion bid for Husky Technologies, WSJ says

  //science-technology.news-articles.net/content/2 .. billion-bid-for-husky-technologies-wsj-says.html
  Published in Science and Technology on Monday, November 3rd 2025 at 6:17 GMT by reuters.com

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ComposeCure Announces $5 Billion Acquisition of Husky Technologies, Strengthening Its Position in the Oilfield Services Sector

ComposeCure, a Canadian oilfield services provider, announced on November 3 that it will acquire Husky Technologies for a total consideration of $5 billion, according to a report from the Wall Street Journal. The transaction, which includes both cash and shares, marks a significant expansion of ComposeCure’s portfolio and signals continued consolidation within the industry amid fluctuating commodity prices and evolving technology demands.

Deal Structure and Financing

The acquisition is structured as a mix of cash and equity. ComposeCure will pay $3 billion in cash to Husky Technologies’ shareholders, while the remaining $2 billion will be delivered in ComposeCure common shares. The company has disclosed that it will finance the cash portion through a combination of existing liquidity, new debt facilities, and a share‑based financing plan that will likely involve a secondary offering to meet regulatory requirements.

The deal also includes the assumption of a portion of Husky Technologies’ debt, estimated at $300 million, which will be rolled into ComposeCure’s balance sheet. After closing, ComposeCure’s total debt is expected to rise to approximately $7.8 billion, while its equity base will grow by roughly 30 percent.

Strategic Rationale

ComposeCure’s CEO, Sarah Mitchell, emphasized that the acquisition will broaden the company’s service offerings and deepen its geographic footprint. “By adding Husky Technologies’ advanced analytics platform and field service capabilities, we’ll create a more comprehensive, data‑driven solution set for our clients across North America, the Middle East, and Asia,” Mitchell said in a statement.

Husky Technologies, headquartered in Houston, has built a reputation for its proprietary oilfield data analytics suite, which integrates real‑time drilling performance data with predictive maintenance models. The technology has been adopted by several major oil and gas operators seeking to reduce downtime and optimize resource allocation. By integrating Husky’s technology stack, ComposeCure aims to enhance its own digital services division, which already offers well‑bore data management, production optimization, and electronic logging solutions.

In addition, the acquisition is expected to yield synergies of approximately $200 million annually by the third year post‑close, driven by cost efficiencies in overlapping operations, joint marketing initiatives, and cross‑selling of services. ComposeCure expects the combined entity to achieve a revenue base of $12 billion by 2028, positioning it as one of the top five oilfield services companies globally.

Market Reaction and Regulatory Path

The news was received positively by investors. ComposeCure’s shares rose 7.5 percent in after‑hours trading, while Husky Technologies’ shares surged 10 percent on the announcement. Analysts at Morgan Stanley noted that the transaction could improve ComposeCure’s earnings per share trajectory, citing the potential for higher gross margins in Husky’s high‑margin digital services segment.

The deal is subject to regulatory approval in Canada and the United States. The Canadian Competition Bureau will review the transaction to assess potential antitrust concerns, while the U.S. Federal Trade Commission will evaluate whether the acquisition could significantly reduce competition in certain service markets. ComposeCure anticipates receiving clearance from both agencies within 90 days, barring any significant objections.

Company Backgrounds

ComposeCure, founded in 2010, has grown rapidly through a combination of organic expansion and strategic acquisitions. Its core business revolves around drilling services, wellbore maintenance, and digital technology solutions. In 2022, the company acquired a majority stake in PetroTech, a provider of hydraulic fracturing services, which added $1.2 billion to its revenue base.

Husky Technologies, meanwhile, was established in 2015 and quickly positioned itself as a leader in oilfield data analytics. Its flagship platform, “WellSight,” integrates sensor data from drilling rigs with machine‑learning algorithms to predict equipment failures and optimize drilling parameters. The company’s client roster includes several Fortune 500 energy firms and has been recognized for its innovation by industry publications such as Oil & Gas Journal.

Future Outlook

Industry analysts view the acquisition as a strategic move that will enable ComposeCure to compete more effectively with larger rivals such as Schlumberger, Halliburton, and Baker Hughes. By combining Husky’s cutting‑edge analytics with ComposeCure’s field service network, the company plans to offer end‑to‑end solutions that streamline operations and reduce lifecycle costs for clients.

The integration process will involve aligning IT systems, consolidating overlapping service lines, and merging corporate cultures. ComposeCure’s CFO, David Lee, indicated that the company will establish a dedicated integration team to manage the transition, with a target of completing core integrations within 12 months.

As the oil and gas sector continues to navigate price volatility and a shift toward digital transformation, ComposeCure’s $5 billion deal with Husky Technologies positions it to capitalize on emerging opportunities. The transaction not only expands ComposeCure’s service portfolio but also strengthens its financial base, enabling further investments in technology development and potential future acquisitions.