Innovex International, Inc. (INVX) Strengthens Well Solutions Portfolio With Citadel Deal

Innovex International, Inc. (NYSE:INVX) has announced the all-cash acquisition of Citadel Casing Solutions, LLC. The transaction is valued at 3.8x Citadel’s LTM Adjusted EBITDA and is expected to be immediately accretive to the company’s EPS by 8%. The company also anticipates $2 million in cost synergies within three months.

Innovex International, Inc. (INVX) Strengthens Well Solutions Portfolio With Citadel Deal

A large oil and natural gas drilling rig in operation, surrounded by a sprawling desert landscape.

Following the merger of Dril-Quip, Inc. and Downhole Solutions in 2024, the Houston-based Innovex International, Inc. (NYSE:INVX) has pursued targeted expansions to solidify its position in well lifecycle management. The recent acquisition of Citadel stands parallel to the company’s core Big Impact, Small Ticket investment strategy and brings in a complementary suite of high-efficiency downhole tools. Adam Anderson, CEO of Innovex International, Inc. (NYSE:INVX), made the following comment:

“We are excited to add another strong team and complementary set of products to Innovex’s portfolio.”

Since its incorporation, Citadel has outpaced market growth through its innovation-based approach. Its proprietary TrenchFoot Wet Shoe technology, which has increased reservoir access and production, could potentially optimize Innovex International, Inc. (NYSE:INVX)’s leadership in U.S. Land and create pathways into offshore and international segments, thus broadening the company’s footprint in engineered well construction technologies

That said, analyst sentiment remains mixed, with Barclays maintaining an Underweight rating on the company and trimming the price target from $16 to $13 as of May 9, 2025. Nonetheless, the share price climbed 6.81% in the past week, indicating a positive interpretation of the acquisition news among investors.

While we acknowledge the potential of INVX to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than INVX and that has 100x upside potential, check out our report about this cheapest AI stock.

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Disclosure: None.