(Recasts, adds details, CEO comments, share movement)
June 3 (Reuters) - Oil and gas service company Smith International Inc SII.N said it would acquire W-H Energy Services Inc WHQ.N, an oilfield service company, for about $3.2 billion to broaden its capabilities and help it enter the directional drilling services market.
Smith International said it would acquire W-H Energy for $56.10 in cash and 0.48 Smith common shares for each W-H Energy share outstanding.
The transaction values W-H Energy at $93.55 per share, Smith International said. This was a 9 percent premium to W-H Energy’s closing price on Monday.
“The combined companies should be significantly strengthened in both drilling and completion product and service offerings,” Smith International Chief Executive Doug Rock said in a statement.
Smith International said the transaction is expected to be immediately accretive to earnings and cash flow per share, excluding the impact of any transaction-related charges.
Directional drilling is used to reach oil under areas that are ecologically-sensitive or where traditional forms of drilling are not allowed.
Shares of Smith International, which have risen 22 percent in the last 52 weeks, were trading at $79.13 in morning trade in the New York Stock Exchange. Shares of W-H Energy were trading up $7.70 at $93.24. (Reporting by Ajay Kamalakaran in Bangalore; Editing by Jarshad Kakkrakandy) (firstname.lastname@example.org; within U.S. +1 646 223 8780; outside U.S. +91 80 4135 5800; Reuters Messaging:email@example.com))