NEW YORK (AP) -- Dawson Geophysical Co. said Monday it plans to acquire rival TGC Industries Inc. in an all-stock transaction valued at about $157 million.
TGC Industries shares jumped more than 15 percent on news of the deal, while Dawson shares also gained more than 1 percent.
Dawson and Plano, Texas-based TGC both provide onshore seismic data services for the oil and gas industry. The combined company will keep the Dawson name and trading symbol.
The boards of directors for both companies have approved the deal, but it is subject to approval by Dawson and TGC shareholders.
Dawson, based in Midland, Texas, said TGC investors will receive 0.188 shares of Dawson for every share they currently own of TGC.
At Friday's closing stock price, Dawson it said that the bid valued TGC shares at $8 a share, a 17 percent premium over TGC's closing price of $6.83 that day. Dawson's shares closed at $42.54 on Friday.
Dawson expects to issue 3.7 million shares in exchange for about 19.6 million shares of TGC. When the transaction is complete, Dawson will have 11.7 million shares outstanding, with 68 percent owned by current Dawson shareholders and 32 percent held by TGC investors.
The deal is expected to be completed in the second or third quarter.
In morning trading Monday, TGC Industries shares rose $1.03, or 15.1 percent, to $7.86 in morning trading, while Dawson shares added 55 cents, or 1.3 percent, to $43.09.
TGC Industries shares jumped more than 15 percent on news of the deal, while Dawson shares also gained more than 1 percent.
Dawson and Plano, Texas-based TGC both provide onshore seismic data services for the oil and gas industry. The combined company will keep the Dawson name and trading symbol.
The boards of directors for both companies have approved the deal, but it is subject to approval by Dawson and TGC shareholders.
Dawson, based in Midland, Texas, said TGC investors will receive 0.188 shares of Dawson for every share they currently own of TGC.
At Friday's closing stock price, Dawson it said that the bid valued TGC shares at $8 a share, a 17 percent premium over TGC's closing price of $6.83 that day. Dawson's shares closed at $42.54 on Friday.
Dawson expects to issue 3.7 million shares in exchange for about 19.6 million shares of TGC. When the transaction is complete, Dawson will have 11.7 million shares outstanding, with 68 percent owned by current Dawson shareholders and 32 percent held by TGC investors.
The deal is expected to be completed in the second or third quarter.
In morning trading Monday, TGC Industries shares rose $1.03, or 15.1 percent, to $7.86 in morning trading, while Dawson shares added 55 cents, or 1.3 percent, to $43.09.