PDC Energy (PDCE, $29.52) to buy SRC Energy (SRCI, $4.62) in $1.7 billion deal

PDC Energy announced that it is acquiring SRC Energy in a deal valued at $1.7 billion, including debt.

As part of the all-stock acquisition, SRC shareholders will receive a fixed exchange ratio of 0.158 PDC shares for each share of SRC common stock, implying a value of $3.99 per SRC share based on PDC's closing common stock price on Aug. 23.

PDC will also be assuming approximately $685 million in debt, as part of the acquisition. The combined entity is expected to advantage from "complementary assets" in the Delaware Basin - a geologic basin in West Texas and southern New Mexico famous for holding large oil field deposits.

Following the deal’s closure, PDC shareholders will own about 62% of the combined company, and SRC shareholders will own around 38%.

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Sergey Savastiouk, Ph.D. has a degree in Applied Mathematics from Moscow University and has extensive experience as an entrepreneur, investor, manager, and mathematician. His professional expertise is in applied mathematics, mathematical modeling, system and pattern analysis, and software and hardware system integration. He has served as the CEO of several hi-tech start-up companies and nonprofit organizations, which has given him proven capabilities in business strategy for high-tech start-up companies, market assessment, company formation, team building, product development, marketing, and sales. He has published numerous articles in journals and magazines on related fields. As a retail investor, he spent 15 years developing his proprietary trading and quantitative algorithms (now Tickeron’s A.I.), which brought him significant returns in trading the stock market. His current work and goal in founding Tickeron is to bring professional, sophisticated stock market analysis capabilities to retail investors via an easy-to-use interface.