Emerson will become largest E&P software provider to global oil and gas industry
Today St. Louis’s Emerson (NYSE: EMR) announced it will acquire Paradigm®, a provider of software solutions for oil and gas companies, for a purchase price of $510 million, reflecting a multiple of 13 times expected 2017 EBITDA.
By Paradigm joining Emerson’s existing Roxar software business targeting exploration and production customers’ (E&P) software needs, Emerson becomes the largest E&P software solutions provider. The combined business offers software for E&Ps that spans seismic processing and interpretation to production modeling.
Machine learning in the oilfield helps limit E&P non-productive drilling
Interpreting data and generating high-fidelity representations of existing brownfield assets lets oil and gas companies avoid non-productive drilling and exploration spending, the company said in a statement.
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.
Paradigm is headquartered in Houston and has more than 500 employees globally. Emerson is a $42 billion enterprise with $15 billion in revenue. The acquisition of Paradigm is expected to close within the next 60 days, Emerson said in a press release.
