Emerson adds to its oil & gas software toolbox with Paradigm buy

U.S.-based tech & engineering company Emerson has agreed to acquire Paradigm, a provider of software solutions for the oil and gas industry, for a purchase price of $510 million, reflecting a multiple of 13 times expected 2017 EBITDA.

Paradigm, joined with Emerson’s existing Roxar software business, creates an end-to-end Exploration & Production (E&P) software portfolio with offerings spanning seismic processing and interpretation to production modelling, Emerson explained on Monday.

The company also added that Paradigm’s technology offerings would enable it to better help oil and gas operators increase efficiency, reduce costs and improve return on investment.

Expanding Emerson’s E&P software and solutions enables the company to help operators achieve Top Quartile performance on investment and operational goals within new and established reservoirs. Interpreting data and generating high-fidelity representations of existing brownfield assets allows oil and gas companies to maximize production and avoid non-productive drilling and exploration spending, Emerson said. In addition, Emerson’s expanded services now enable oil and gas operators, through machine learning and cloud computing, to make decisions in the field leading to more efficient operations.

“This acquisition is a significant technology investment that meets our customers’ growing demand for an independent, global provider of E&P software solutions,” said Emerson Chairman and Chief Executive Officer David N. Farr. “Paradigm broadens our leadership in the upstream oil and gas market by adding a range of subsurface software tools that complement our growing Automation Solutions portfolio.”

Paradigm is headquartered in Houston and has more than 500 employees globally. According to Emerson, the company provides an array of tools that enable customers to gain deeper insight into the subsurface, reduce uncertainty and support responsible asset management.

“When combined with Emerson’s Roxar Software Solutions portfolio, Paradigm expands the global upstream oil and gas capability of our Plantweb digital ecosystem, creating a more comprehensive digital portfolio for our customers from exploration to production,” said Mike Train, Executive President of Emerson Automation Solutions. “Our offering can now help customers better maximize the value of their existing investments and reach Top Quartile performance.”

Top Quartile performance is defined as achieving operations and capital performance in the top 25 percent of peer companies.

The acquisition is expected to close within the next 60 days, subject to various regulatory approvals.

Share this article

Follow Offshore Energy Today

Events>

<< Feb 2020 >>
MTWTFSS
27 28 29 30 31 1 2
3 4 5 6 7 8 9
10 11 12 13 14 15 16
17 18 19 20 21 22 23
24 25 26 27 28 29 1

Offshore Energy Exhibition and Conference (OEEC) 2020

Offshore Energy addresses the technical, operational and commercial challenges associated with future sector growth.

read more >

CERAWeek 2020

 Each year, CERA clients gathered for a few days in Houston…

read more >

Offshore Technology Conference (OTC) 2020

The Offshore Technology Conference (OTC) showcases leading-edge technology for offshore drilling, exploration…

read more >

OWI APAC 2020

Over the two-day conference, 30 expert speakers will share exclusive insight to help drive well work efficiencies through innovative…

read more >

Jobs>

Looking to fill a job opening?

By advertising your job here, on the homepage of OffshoreEnergyToday.com, you'll reach countless professionals in the sector. For more information, click below...

apply

Looking to fill a job opening?

By advertising your job here, on the homepage of OffshoreEnergyToday.com, you'll reach countless professionals in the sector. For more information, click below...

apply