Emerson Agrees to Acquire Paradigm
Broadens Emerson’s software capabilities to serve global oil and gas
industry
Positions Emerson as the largest independent provider of Exploration
& Production software solutions
ST. LOUIS–(BUSINESS WIRE)–Emerson (NYSE: EMR) has agreed to acquire Paradigm®, a leading 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 a best-in-class, end-to-end Exploration & Production (E&P)
software portfolio with offerings spanning seismic processing and
interpretation to production modeling. Paradigm’s technology offerings
will enable Emerson 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. 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. 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.
NOTE: A short slide presentation with additional information is available
on the Emerson website.
About Emerson
Emerson (NYSE: EMR), headquartered in St. Louis, Missouri (USA), is a
global technology and engineering company providing innovative solutions
for customers in industrial, commercial, and residential markets. Our
Emerson Automation Solutions business helps process, hybrid, and
discrete manufacturers maximize production, protect personnel and the
environment while optimizing their energy and operating costs. Our
Emerson Commercial and Residential Solutions business helps ensure human
comfort and health, protect food quality and safety, advance energy
efficiency, and create sustainable infrastructure. For more information
visit Emerson.com.
Forward-Looking and Cautionary Statements
Statements in this press release that are not strictly historical may be
“forward-looking” statements, which involve risks and uncertainties, and
Emerson undertakes no obligation to update any such statements to
reflect later developments. These risks and uncertainties include
economic and currency conditions, market demand, pricing, protection of
intellectual property, and competitive and technological factors, among
others, as set forth in Emerson’s most recent Annual Report on Form 10-K
and subsequent reports filed with the SEC.
Contacts
For Emerson
Mark Polzin, 314-982-1758
