Oil and energy company C&J Energy Services (CJ) - Get Report  and fracking specialist Keane Group (FRAC) - Get Report on Monday said they agreed to a "merger-of-equals," creating a diversified oilfield services company.

Under terms of the deal, C&J shareholders will receive 1.6149 Keane shares for each C&J share they own. Based on Friday's closing prices, that values C&J stock at $11.29 each, or a 5.3% premium. After the deal closes, C&J and Keane shareholders will each own 50% of the equity of the combined company.

Shares of C&J gained nearly 6% at the open on Monday, rising to $11.35. Shares of Keane, meanwhile, slipped 1.58% to $6.87.

The new company will have an enterprise value of $1.8 billion, including $255 million in debt, the companies said in a statement. The deal is expected to close in the fourth quarter.

"The merger of equals unites two great companies, resulting in a broader portfolio of well completion services across an even greater footprint in the U.S., benefiting our combined employees, shareholders, customers, suppliers, and the communities in which we operate," Keane CEO Robert Drummond said in the statement.