National Oilwell Varco (NOV) announced it is acquiring Denmark's NKT Holding and Norway's Subsea 7, the unit of the companies that make pipelines. Varco will pay $673.4 million for the units.
This will increase Varco's exposure to the offshore segment of the oilfield equipment industry.
National Oilwell Varco's Chief Executive Pete Miller said the acquisition will "significantly increases our footprint in this growing segment of the oil and gas industry."
The company just came off a quarter which exceeded analysts' expectations, generating revenue of $4.26 billion. Revenue jumped 34 percent over the same quarter of 2011, to $3.17 billion.
Morgan Stanley (NYSE:MS) upgraded the company from an "Equal Weight" rating to an "Overweight" rating.
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