GE‘s oil and gas unit has agreed to acquire Lufkin Industries for a total of $3.3 billion, the companies announced today.

The $3.3 billion purchase price, equal to $88.50 for each outstanding share of Lufkin stock, will provide GE Oil and Gas with what unit CEO Daniel Heintzelman calls  “avanced technologies, combined with new drilling practices, [that] are revolutionizing the oil and gas industry.”

Lufkin’s artificial lift technologies are currently utilized in 94% of the approximately 1 million oil-producing wells worldwide. Artificial lift will complement GE Oil and Gas’ existing electric submersible pump (ESP) capabilities, a segment of the lift industry Lufkin is not currently active in.  Lufkin has 4,500 employees, located in more than 40 countries. It is headquartered in Texas.

The $88.50 offer is approximately 38% higher than Lufkin’s closing share price prior to the announcement, on Friday. Lufkin generated a record $1.3 billion in revenues in 2012, a 37% increase from the prior year. The agreement is subject to shareholder and regulatory approval, as well as customary closing conditions being met. The deal is expected to close in the second half of 2013.

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The article GE to Acquire Lufkin Industries for $3.3 Billion originally appeared on Fool.com.

Fool contributor Tim Brugger has no position in any stocks mentioned. The Motley Fool owns shares of General Electric Company. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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