US advises Flotek on its eight-figure acquisition of JP3 Measurement

A US team of Norton Rose Fulbright corporate, M&A and tax lawyers advised Flotek Industries, Inc. (Flotek) on its US$34.4 million acquisition of JP3 Measurement, LLC (JP3), a privately held leading data and analytics technology company, in a cash-and-stock transaction.

Flotek empowers the energy industry to maximize the value of their hydrocarbon streams and improve return on invested capital through data-driven platforms and chemistry technologies. Flotek serves downstream, midstream and upstream customers, both domestic and international. Flotek is a publicly traded company headquartered in Houston, Texas, and its common shares are traded on the New York Stock Exchange under the ticker symbol "FTK."

The transaction, which positions Flotek for accelerated growth and diversifies its business across all segments of the hydrocarbon value chain, included $25 million in cash and 11.5 million shares in Flotek common stock. The deal also includes the assumption of US$1.3 million of debt and an additional US$5 million earn-out based on appreciation of Flotek’s share price.

JP3’s innovative, real-time data platforms combine the energy industry’s only field-deployable, inline optical analyzer with proprietary cloud visualization and analytics, to radically increase processing efficiencies and valuation of natural gas, crude oil and refined fuels.

Norton Rose Fulbright's team was led by Brandon Byrne (Dallas) and included Robert Morris, Steve Kuntz, and Jamila Mensah (Houston); Mara Rogers (New York); Robert Mashburn and Carolyn Webb (Houston); Bob Greenslade (Denver and Houston); Madison Keeble (Austin and Dallas); Mike Stimson (Austin and San Antonio); and Cassidy Tennyson (Dallas).