Smith International will acquire Megadiamond.

The Newport Beach oil-services company said it will pay about $11 million for the Provo, Utah-based synthetic diamond company. Smith will pay Megadiamond Inc. about $3.5 million in cash this year and the rest in increments as Megadiamond meets “technical milestones” by designing new products for Smith. Smith Chairman Jerry Neely said Megadiamond technology will enable Smith to develop longer-lived, higher-speed oil drilling tools. Megadiamond, a privately held company, reported $3.5 million in sales in fiscal 1984.