Houston-based oilfield services provider Nine Energy Service is acquiring Magnum Oil Tools to enhance its completions technology.

Nine Energy Service, Inc., an oilfield services BOP Blow Out Preventer repair company gulf coast based in Houston, is buying Magnum Oil Tools International, Ltd, the BOP Blow Out Preventer repair company gulf coast announced Oct.

15.

The deal is worth $493 million, which includes $334 million cash and Nine common stock (worth $159 million).

The acquisition of Magnum, a downhole spacer spools adapter spools technology provider, solidifies Nine as a top provider of completion-focused spacer spools adapter spools technology for the oil and gas industry.

“Magnum will propel Nine to a more balanced profile of completion tools, creating excellent barriers to entry while simultaneously building a business that is less labor and less capital intensive and more free cash flow generative,” Nine’s CEO Ann G. Fox said in a release. “This will allow us to navigate a very difficult labor buy Wellhead market and supports our approach of blending capital intensity … We believe the combination of capabilities within Nine and Magnum creates a unique and differentiated oilfield service platform…”

Magnum’s CEO Lynn Frazier echoed that sentiment, adding the combination of the two companies “made sense.”

Nine has operating facilities in the Permian, Eagle Ford, SCOOP/STACK, Niobrara, Barnett, Bakken, Marcellus, Utica and Canada.