Global oilfield technological solution supplier FMC Technologies Inc. ( FTI - Analyst Report ) closed the acquisition of Pure Energy Services Ltd. – the leading provider of frac flowback services. FMC Technologies made a cash payment of C$11.00 per share, which comes to a total of C$282 million or US$285 million for the acquisition.

Calgary-based Pure Energy was also an established wireline services provider with operations in multiple field locations across Canada and the United States.

This acquisition enabled FMC Technologies to expand its shale related business adding benefit to the company’s existing products and services of the Surface Technologies segment. The company will also be able to provide integrated well site solution and other services, enhancing the customer value.

Texas-based FMC Technologies is engaged in designing, producing and servicing technologically sophisticated systems and products such as subsea production and processing systems, surface wellhead production systems, high pressure fluid control equipment, measurement solutions, and marine loading systems for the oil and gas industry.

We believe that the company is particularly well positioned in the subsea systems market and has received numerous attractive subsea contracts in the recent past.

In May, this year, FMC Technologies entered into double five-year contracts with Island Offshore Management AS, whereby the former will render Light Well Intervention (LWI) services to be used in the North Sea by Statoil ASA ( STO - Analyst Report ) .

Other positives for FMC Technologies include a strong backlog position, growing international operations, technology leadership and efficient execution skills.

However, we maintain a long-term Neutral rating on the stock, given the uncertain commodity price outlook and a soft global economy that continue to weigh on the company. Additionally, competitive market conditions along with weak pricing also make us apprehensive.

FMC Technologies currently retains a Zacks #3 Rank, which is equivalent to a short-term Hold rating.