US-based energy services company ProFrac has signed an agreement to acquire oilfield service company US Well Services (USWS), in a stock-for-stock transaction.

Under the terms of the transaction, USWS shareholders are expected to receive 0.0561 shares of ProFrac Class A common stock for each USWS common share held.

Through the acquisition, ProFrac is expected to expand its fleet with 44 active fleets, including 12 electric fleets, 13 Tier IV dual fuel fleets, and 3 Tier IV diesel fleets by the end of 2022.

In addition, the company would obtain USWS’ leading intellectual property portfolio, including more than 110 patents related to electric frac technology.

The acquisition is expected to be completed in the fourth quarter of 2022, subject to certain customary closing conditions, including the approval of USWS stockholders.

Piper Sandler & Co. served as an exclusive financial and Paul Hastings as legal advisor to the Special Committee of US Well Services Board of Directors on the transaction.

US Well Services president and CEO Kyle O’Neill said: “We are thrilled to join forces with ProFrac. ProFrac is a best-in-class operator, and we believe the combined company will be well-positioned to capitalise on the growing opportunity for electric fracturing services.

“This combination provides value for U.S. Well Services shareholders, employees and customers, and we look forward to working with the ProFrac team to realize our shared vision for the business.”

In a separate development, ProFrac through its subsidiary ProFrac Holdings II, has agreed to acquire SP Silica of Monahans and SP Silica Sales, for around $90m.

Collectively called Monahans, SP Silica of Monahans and SP Silica Sales are subsidiaries of Signal Peak Silica, a provider of in-basin supply and logistics services in the oil and gas industry.

The SPS Monahans will add around three million tonnes of annual sand production capacity of 40/70 and 100 mesh, along with nearly 25,000 tons of on-site storage.

ProFrac Holding chief executive officer Ladd Wilks said: “Our acquisition of Signal Peak Silica’s Permian Basin operations is the latest example of scaling our vertical integration strategy as we continue to consolidate supply chain components to better serve our customers, lower our costs and improve our operating margins and profitability.”

ProFrac executive chairman Matt Wilks said: “The Monahans operation brings us a dedicated and dynamic workforce and, by the third quarter of 2022, would expand our total to three in-basin sand mines within the ProFrac portfolio.”