04:26 AM EDT, 06/10/2024 (MT Newswires) -- Noble (NE) said Monday that it has entered a definitive merger agreement to acquire Diamond Offshore Drilling ( DO ) in a stock plus cash transaction with an implied value of $15.52 per share.

Diamond shareholders will receive 0.2316 Noble shares and $5.65 in cash for each Diamond share, amounting to $600 million in total cash to Diamond shareholders on a fully diluted basis.

Upon closing, Diamond shareholders will own about 14.5% of Noble's outstanding shares, the company said.

The company plans to fund the cash portion of the transaction through new debt financing, which it has secured through a $600 million committed bridge financing facility.

The transaction is expected to close by Q1 of 2025 and has been unanimously approved by the board of directors of each company.

Following the acquisition, Noble said it will own and operate a fleet of 41 rigs including 28 floaters and 13 jackups.

Additionally, the company's board of directors approved a 25% increase in its quarterly dividend to $0.50 per share, payable on Sept. 26 to shareholders of record on Sept. 12.