Halliburton and Baker Hughes have reached a definitive deal under which Halliburton will acquire Baker Hughes in a stock and cash transaction. The deal has an equity value of $34.6 billion, $78.62 per Baker Hughes share, based on Halliburton’s closing price on Nov. 12. The transaction is expected to close in the second half of 2015.

“The transaction will combine the companies’ product and service capabilities to deliver an unsurpassed depth and breadth of solutions to our customers, creating a Houston-based global oilfield services champion, manufacturing and exporting technologies, and creating jobs and serving customers around the globe,” says Dave Lesar, chairman and CEO of Halliburton.

The combined company will retain the Halliburton name and continue to be traded on the New York Stock Exchange under the ticker symbol “HAL.” It will be headquartered in Houston and Dave Lesar will continue as Chairman and CEO.

Following the completion of the acquisition, the combined company’s board of directors is expected to expand to 15 members. Three will come from the board of Baker Hughes.

The agreement has been unanimously approved by both companies’ boards of directors. It will leave Baker Hughes stockholders owning approximately 36 percent of the company.

The business deal brings two huge players in oil and natural gas together. On a pro-forma basis they, together, had 2013 revenues of $51.8 billion, more than 136,000 employees and operations in more than 80 countries.

Baker Hughes stockholders will receive a fixed exchange ratio of 1.12 Halliburton shares plus $19.00 in cash for each Baker Hughes share. Halliburton plans to finance the cash portion of the acquisition through a combination of cash on hand and fully committed debt financing.

The deal is subject to approvals from both companies’ stockholders, regulatory approvals and customary closing conditions. Halliburton has agreed to pay a fee of $3.5 billion if the transaction falls through due to a failure to obtain required antitrust approvals.

Founded in 1919, Halliburton is one of the world's largest providers of products and services to the energy industry. With more than 80,000 employees in more than 80 countries, the company serves the upstream oil and gas industry through locating hydrocarbons and managing geological data, drilling and formation evaluation, well construction and completion, and optimizing production through the life of the field. To learn more, visit www.halliburton.com.

Baker Hughes is a supplier of oilfield services, products, technology and systems to the worldwide oil and natural gas industry. The company's 60,000 employees today work in more than 80 countries. For more information, visit www.bakerhughes.com.