Innovex Acquires TCO Group for $95 Million in Energy Tech Deal

Innovex International is set to significantly expand its technological capabilities in the oil and gas sector with the planned acquisition of Norway-based TCO Group. The all-cash and stock transaction, valued at approximately $95 million, is anticipated to close by early Q3 2026 and is projected to enhance Innovex's earnings per share.

This strategic move brings TCO Group, a pioneer in intervention-free laminated glass plug technology since its founding in 1999, into the Innovex fold. TCO's innovative solutions have revolutionized well completion and tubing-conveyed perforating, eliminating the need for costly and time-consuming fishing operations. This focus on high-impact, low-complexity solutions aligns perfectly with Innovex's acquisition strategy, which prioritizes mission-critical products offering a "Big Impact, Small Ticket" value proposition.

The financial profile of TCO Group underscores the value of this acquisition. For the fiscal year ending December 31, 2025, the company reported robust net income of roughly $12 million and adjusted EBITDA of approximately $18 million. The acquisition price represents a multiple of about 5.4 times TCO's 2025 adjusted EBITDA, a figure that suggests a disciplined valuation by Innovex within the current market for specialized energy services technology.

Innovex, headquartered in Houston, views this acquisition as a key step in fortifying its market presence in both Norway and the United Arab Emirates. These regions are identified as having substantial long-term growth potential within the energy services landscape. By integrating TCO's advanced technologies, Innovex aims to leverage its extensive global infrastructure and established customer relationships to accelerate the adoption and expansion of TCO's offerings worldwide.

The integration is expected to create synergistic growth opportunities, allowing Innovex to offer a more comprehensive suite of well lifecycle solutions. Adam Anderson, CEO of Innovex, expressed enthusiasm for the deal, highlighting TCO's differentiated technologies and strong execution. Similarly, Robert Abercrombie, CEO of TCO Group, conveyed optimism about continuing their growth trajectory under the Innovex banner, emphasizing the enhanced global reach and complementary portfolio.

Kendal Reed, CFO of Innovex, further elaborated on the financial rationale, stating that the acquisition fits within their M&A framework and is expected to drive returns on capital employed well above idle balance sheet cash. The deal is poised to strengthen Innovex's position in key international and offshore markets, where TCO has already established a strong foothold with its high-margin, cash-generative products.

Legal counsel for Innovex included Akin Gump Strauss Hauer & Feld LLP and Wikborg Rein Advokatfirma AS, while Advokatfirmaet Thommessen AS advised TCO Group. The combined entity is set to redefine well technology, offering enhanced efficiency and value to customers in a dynamic global energy market.