ACT Energy completes acquisition of Stryker Energy

Executive Summary

• ACT Energy Technologies completed the acquisition of Stryker Energy Directional Services LLC on January 5, 2026, for total consideration of $24.2 million USD (~$34 million CAD).
• The transaction expands ACT's directional drilling footprint in the Southern U.S., adds 10 RSS tools to its existing fleet, and targets over $5.0 million in annual synergies.
• Consideration is structured as $12.5 million USD in cash, $5.0 million USD in equity, and a $6.7 million USD promissory note, with an expected cash flow payback period of less than 2.5 years.

Key Details

• Total Consideration: $24.2 million USD (~$34 million CAD)
• Cash Component: $12.5 million USD paid at closing
• Equity Component: $5.0 million USD via issuance of 1,299,394 ACT common shares at a deemed price of $5.29 per share
• Debt Component: $6.7 million USD promissory note issued by a wholly owned subsidiary, structured as a 3-year, 6% subordinated note ($2.5M repayable at 12 & 24 months; $1.7M repayable at 36 months)
• Concurrent Private Placement: Issuance of 727,660 ACT common shares to Stryker at $5.29/share for aggregate gross proceeds of $3.85 million CAD ($2.8 million USD)
• Share Restrictions (Acquisition Shares): 4-month statutory hold; contractual resale restrictions release 30% at 12 & 24 months, and 40% at 36 months post-closing
• Share Restrictions (Private Placement Shares): 4-month statutory hold; contractual resale restrictions release 25% at 12, 24, 36, and 48 months post-closing
• Target Operations: Stryker (founded 2010, Conroe, Tex.) averaged ~17 active jobs per operating day in 2025, utilizing RSS technology and rented third-party mud motors for ~50% of jobs
• Fleet Expansion: Adds 10 RSS tools to ACT's existing U.S. RSS fleet of 30 tools
• Synergies & Financial Impact: Expects >$5.0 million in annual synergies (primarily from replacing rented mud motors with ACT-owned inventory); expected to be accretive to net income, adjusted EBITDAS, and free cash flow
• Payback Period: Expected cash flow payback in less than 2.5 years, with additional upside from realized synergies
• Management: Stryker's existing management team will retain leadership to ensure continuity
• Advisers: Peters & Co. Ltd. (financial adviser); DS Lawyers Canada LLP (Canadian legal counsel); Porter Hedges LLP (U.S. legal counsel)

Notable Quotes

• "Stryker has built a strong brand and a proven reputation for delivering high performance directional drilling services to customers across the Southern U.S. We are excited to welcome Stryker's management team and employees to ACT. Their expertise and operational track record will strengthen our U.S. platform and enhance our ability to serve customers with high-value drilling technologies." — Tom Connors, President and CEO, ACT Energy Technologies
• "The acquisition of Stryker, which relies on rented third party mud motors for approximately one-half of its active jobs, presents a meaningful opportunity for ACT to supply motors from our existing inventory, immediately reducing rental expenses and expanding margins. Their RSS fleet and deep experience in deploying and servicing MWD tools further complement our technology-focused strategy." — Tom Connors, President and CEO, ACT Energy Technologies
• "We expect the cash flow generated by Stryker to pay back in less than 2.5 years, with additional upside as synergies are realized." — Tom Connors, President and CEO, ACT Energy Technologies