KCA Deutag Drilling Limited signed a binding agreement to acquire Drilling Onshore Business from Saipem SpA (BIT:SPM) on June 1, 2022. The consideration will be paid $550 million in cash plus 10% equity stake in in KCAD after its acquisition of the Saipem's Drilling Onshore. The transaction does not entail any financial debt transfer from Saipem to KCAD.

Final consideration is subject to customary closing adjustments. The transaction is expected to close by October 31, 2022 for the activities in the Middle East and by March 31, 2023 for the activities in the Americas. The cash proceeds from the deal would be used to reduce net debt and fund 2022 to 2025 business plan of Saipem.

As of October 28, 2022, KCA Deutag Drilling has acquired Drilling Onshore Business activities in the Middle East and Africa for approximately $490 million. As of February 7, 2022, KCA Deutag Drilling Limited completion of the Kuwait component of the Saipem SpA Onshore Drilling acquisition. As of February 7, 2022, the acquisition of the Latin America business together with the rigs in Romania and Kazakhstan, is still expected to complete during the first half of 2023.

As of May 2, 2023, KCA Deutag Drilling has acquired Drilling Onshore Business activities in Latin Americas corresponding to 44 rigs and it is expected that the remaining onshore drilling activities will be transferred by September 30, 2023, against the remaining part of the transaction consideration, amounting to $15 million. JPMorgan Chase & Co. (NYSE:JPM) and Lazard Ltd (NYSE:LAZ) acted as financial advisor to Saipem SpA.

Barclays and Houlihan Lokey have acted as financial and debt advisors respectively, to KCA Deutag on the transaction.