Oil States International Inc. (NYSE: OIS) is adding to its downhole/completion tools portfolio with the acquisition of oilfield service manufacturer GEODynamics Inc.

Houston-based Oil States said in a Dec. 12 release that it had agreed to acquire GEODynamics from funds managed by Lime Rock Partners, members of its management team and other investors in a $525 million transaction comprised of cash and stock.

GEODynamics provides oil and gas perforation systems and downhole tools for completion, intervention, wireline and well abandonment operations. Oil States said it anticipates that GEODynamics’ “product innovation and collaborative relationships” with E&P operators will further augment its research and development efforts and lead to enhancements in its consumable product offerings in the growing markets for technology-backed products used in complex well completions.

Additionally, Oil States expects the acquired products and technology to benefit from Oil States’ “global footprint and presence, history of operating excellence and strong balance sheet, thereby enhancing the growth potential of the combined businesses.”

“GEODynamics is a unique acquisition opportunity for Oil States,” Cindy B. Taylor, Oil States’ president and CEO, said in a statement. “It offers meaningful growth potential that combines technology with downhole consumable completion solutions that are ideal for the current operating environment which is characterized by longer lateral lengths, increased frack stages and a growing number of perforation clusters which help enhance well productivity. Their products are complementary to our short-cycle elastomer products and completion services offerings, which will afford us additional revenue opportunities and allow us to service an expanded customer base.”

The acquisition is on a cash-free, debt-free basis with roughly $24 million of GEODynamics’ debt being repaid by the sellers at closing with proceeds from the transaction.

Total transaction consideration for the acquisition consists of $300 million cash, issuance of Oil States common stock valued at $200 million and a $25 million unsecured promissory note. Oil States plans to fund the cash portion using borrowings under its amended revolving credit facility.

Oil States said it expects to close the acquisition of GEODynamics during first-quarter 2018. The transaction is subject to regulatory approvals and other customary closing conditions.

Baker Botts represented Lime Rock Partners and GEODynamics in the transaction.

GEODynamics has headquarters, engineering, sales, laboratory and manufacturing facilities located in Millsap, Texas. The company also has technical sales and services in Aberdeen, Scotland and nine U.S. distribution centers.