NDS will pay C$12.75 ($12.38) per share for CE Franklin, which is a supplier of products and services to the energy industry.

The company distributes products including pipes, valves, flanges, fittings, production equipment, tubular products and other general industrial supplies.

NOV chairman president and CEO Pete Miller said, "The addition of CE Franklin to NOV’s Canadian distribution operations will broaden our product offering and customer base, while strengthening our combined abilities to serve all of our customers."

Completion of the deal is subject to a number of conditions including, the approval of 66?% of CE Franklin’s shareholders, as well as customary court and regulatory approvals.

As per the deal, CE Franklin has agreed not to solicit, initiate or participate in any discussions concerning any other acquisition proposals and has also agreed to pay a termination fee of C$7.5m ($7.3m).

CE Franklin has also terminated a shareholder rights plan adopted on 18 April 2012.