What happened

Shares of RigNet (NASDAQ:RNET) continued rebounding last month, closing 14.5% higher.

So what

One of the catalysts for RigNet's rebound was that oil enjoyed its best month since April of last year, rising 9% for the month and taking most oil stocks higher. However, crude's rebound wasn't the only driver of RigNet's rally last month because the company closed not one but two strategic acquisitions that should fuel future growth. 

A satellite dish on an offshore oil rig.

Image source: Getty Images.

The first deal was the acquisition of nearly all the assets of Data Technology Solutions (DTS), which is a provider of comprehensive communications and IT services to the onshore, offshore, and maritime industries. RigNet will use the acquired assets to "enhance customer experience, drive growth, innovation, and customer engagement" by integrating them into its current offerings. In particular, RigNet likes the land-based and maritime focus of DTS because it will bolster the company's operations in those two areas.

In addition, RigNet completed the acquisition of nearly all the assets of Energy Satellite Services for $22.2 million. The company primarily supplies wireless communication services via satellite networks to midstream oil and gas operators. As a result of the deal, RigNet will now maintain more than 6,000 sites as it becomes the leader in North American midstream communications services. Furthermore, this deal diversifies RigNet along the energy value chain by boosting its presence in the midstream sector.

Now what

RigNet has been actively acquiring businesses in recent months to bolster its position in key markets while also expanding into adjacent areas and industries. These deals follow those trends and help position the company to deliver improving results in future quarters as the energy market recovers while also providing greater stability thanks to the added diversification. 

The company's recent string of deals has certainly helped move the needle for investors considering that the stock is up more than 50% over the past year. That said, given that it's still down about 65% since the onset of the downturn nearly three years ago, there appears to be plenty of upside ahead as the market continues to recover and RigNet's growth initiatives start bearing fruit.

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