Oil field services provider, Baker Hughes, said Monday it would acquire oil oil-services firm BJ Services in a $5.5 billion stock-and-cash transaction.

The stock-and-cash deal values BJ at a 16 percent premium over its closing price on Friday, said the companies, whose boards have approved the transaction.

The transaction will leave BJ stockholders owning about 27.5 percent of Baker Hughes's outstanding shares, Houston-based Baker Hughes said in a statement today.

The deal will make Baker Hughes a major player in the key North American pressure pumping, in which gas or liquids are injected into wells to increase production.

Baker Hughes Chief Executive Officer Chad Deaton said in the statement. Pressure pumping is expected to account for about 20 percent of the combined company's revenue, compared with less than 1 percent for Baker Hughes last year.