Flotek Industries Inc. (NYSE: FTK) agreed to divest its drilling technologies segment to National Oilwell Varco LP (NYSE: NOV) for $17 million, the Houston company said May 2.

Proceeds from the sale will go toward reducing outstanding debt on Flotek's balance sheet, according to the company release.

Flotek's drilling tech division has been a foundation for the company for more than a decade, said John Chisholm, chairman, president and CEO, adding that the decision for the divestiture is in-line with ongoing initiatives to improve the value of the company.

"As we began our internal review of our business segments roughly a year ago, we have analyzed our current positioning, future opportunities, the broader energy market and listened to our shareholders," Chisholm said in a statement. "This process has led us to arrive at this point which marks a transformation from a diversified oilfield service company into an asset-light, data and technology focused custom chemistry provider with an expanding set of global energy and industrial end markets."

Flotek said it expects the transaction to close by mid-May.