As per the all cash agreement, Sidewinder’s acquisition subsidiary Fastball Acquisition will buy all outstanding shares of Union Drilling at the rate of $6.50 a share.

Union Drilling shares will be purchased at a premium of 40.0% over the 60-day volume weighted average share price of Union Drilling on 24 September 2012 and the transaction is expected to close in October-December 2012.

Union Drilling president and chief executive officer Christopher Strong said the acquisition recognizes the value of the company’s land drilling equipment, scale, operational scope and workforce.

"It also delivers a significant premium to our loyal shareholders and allows our employees to continue to deliver on our strategic goal of revitalizing our fleet and investing in people, processes and equipment," Strong added.

Sidewinder chairman and CEO Jon Cole also said that the acquisition enables the company to increase its operations, geographical reach and customer base.

"After we complete our acquisition of Union Drilling, we will have the scale and skilled workforce necessary to more effectively serve our customers in multiple geographies," Cole said.