Arc Financial is acquiring STEP Energy Services for approximately $400 million, capitalizing on the stabilization of Alberta's energy sector.

Information on the Target

STEP Energy Services Ltd. is an oilfield services company based in Calgary, Alberta. It has been actively involved in providing specialized services for the oil and gas sector, which are crucial for the overall efficiency of energy production. The company has garnered attention in the private equity market due to its significant operational footprint and growth potential within the energy sector.

On October 17, 2025, STEP Energy entered into an agreement to be acquired by Arc Financial in an all-cash transaction valued at approximately $400 million. This acquisition represents a significant milestone for STEP Energy, as it goes private at a share price of $5.50, a 29% premium over its previous unaffected share price.

Industry Overview in Alberta

The private equity landscape in Alberta is witnessing notable activity, particularly as the Canadian market experiences unprecedented inflows of private equity investment, totaling $56 billion in the first nine months of 2025. Despite this, Alberta has only captured $74 million, reflecting a mere 0.1% share of this