Oil drilling equipment maker Cameron International Corp. ( CAM - Analyst Report ) recently closed the acquisition of TTS Energy Division from TTS Group ASA for a cash payment of $270 million. The deal was announced in mid-April.

The TTS Energy Division is engaged with the supply of high quality drilling equipment, rig packages and rig solutions for both jackup and onshore rigs to customers across the globe.

The division’s products comprise drilling rig control systems, top drives, traveling blocks, automated pipe handling along with iron rough necks, drawworks, derrick structures, drill floor tools, fingerboards, blowout preventer (BOP) handling equipment, deadline anchors, and drill line spoolers.

Cameron management remains highly upbeat regarding this takeover and believes that TTS product line will complement the company’s existing portfolio of goods and service offerings.

Of late, Cameron has adopted the strategy of purchasing attractive business units that are capable to delivering long-term benefits. In August, last year, Cameron acquired LeTourneau Technologies Drillings Systems and Offshore Products divisions from Joy Global Inc. ( JOY - Analyst Report ) for $375 million.

Houston, Texas-based Cameron is a leading manufacturer of pressure control equipment used in onshore, offshore, and subsea applications for oil and gas drilling, production, and transmission. The company operates through three segments: Drilling & Production Systems; Valves & Measurement; and Process & Compression Systems.

Cameron currently retains a Zacks #3 Rank, which translates into a short-term Hold rating. For the longer term, we are maintaining our Neutral recommendation on the stock.

We like Cameron’s diversified product portfolio, specialty service capabilities and proprietary technological expertise. Other positives for Cameron include a strong backlog, growing international operations and a favorable outlook for subsea activity levels.

However, shares of the company are fairly valued at the current level, considering the sensitivity of Cameron’s business to gas/oil price volatility, as well as exploration and production spending patterns, costs, geo-political risks, competition and the advent of new technologies.