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Emerson to acquire Paradigm for $510 million

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Industrial automation company Emerson has reached a deal to acquire Paradigm, a provider of software solutions for the oil and gas industry. 

The purchase price is $510 million, which Emerson says reflects a multiple of 13 times expected 2017 EBITDA.

Emerson says it will combine Paradigm with its existing Roxar software business to provide an exploration and production software portfolio with offerings spanning seismic processing and interpretation to production modeling. 

Emerson says Paradigm’s technology will 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 will enable the company to help operators achieve “Top Quartile Performance” – in the top 25 percent of peer companies – on their investment and operational goals within new and established reservoirs, says the company.

 

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, says Emerson.

Emerson adds that its 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.

Emerson CEO David Farr says: “This acquisition is a significant technology investment that meets our customers’ growing demand for an independent, global provider of E&P software solutions.

“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.

Mike Train, executive president of Emerson automation solutions, says: “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.

“Our offering can now help customers better maximize the value of their existing investments and reach Top Quartile Performance.”


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