Add Energy Group sells software subsidiary to Canadian listed Constellation Software Inc.

Closing Sale Novatech.jpg

Stavanger — September 2018 — Add Energy Group, a global leader in engineering and advisory services relating to drilling, completion, testing, servicing, asset integrity and well kill of onshore and offshore wells, is pleased to announce that it has sold its subsidiary Add Novatech AS to Vela Operating Group(“Vela”), a wholly owned division of Canadian listed software company Constellation Software Inc (TSX:CSU).

Add Novatech develops and sells an environmental software suite for calculating, forecasting and follow-up of emissions and discharges for the international oil & gas industry. With 3 decades of experience with environmental compliancy issues and developing the best solutions to meet the clients’ needs, Add Novatech is a preferred partner for the industry.

Add Novatech became a part of Add Energy Group in 2008 when the company was acquired from the original founders. Since then the strategy has shifted from being an environmental consultancy to a cloud-based software company.

In a statement on the transaction Add Energy Group CEO Ole Rygg stated that “As Add Novatech developed into a pure cloud-based software company, we recognized that other owners could internationalize and grow the company, also outside the oil industry, in a better way than we could do within Add Energy Group. As such we are pleased that Add Novatech now becomes a part of a global software company with huge competence, experience and reach within software development and sales”.

Add Novatech will join a growing group of industry leading companies serving the energy and resources vertical markets within Vela Software. Gabor Czegledy, Vela Software’s Portfolio Manager overseeing these end markets, provided additional comments on the transaction: “We are very excited with our newest addition to the portfolio. This gives us a platform in the critically important asset environmental compliance segment for offshore oil and gas exploration and production. As permanent-hold investors, we are eager to partner with Add Novatech’s industry-leading employees and customers for the long-term.

The consideration paid for Add Novatech in the transaction is undisclosed, but in a comment Add Energy Group Chairman Per Arne Jensen, representing main owner PE fund Progressus, states that “The value is in line with international valuation of software-as-a-service companies and represents a substantial multiple on invested capital”.

  

About Add Energy Group
Add Energy is an International Consultancy Provider for the Energy Industry. We combine specialized engineering and proprietary software solutions to deliver a complete suite of optimized consultancy services, including;

  • Engineering Studies and Improvement Plans]

  • Technical Assessments

  • Incident Investigations and Support

  • Performance Analysis and Management

  • Strategic Advice

  • Reporting and Benchmarking

  • Production Studies, Testing and Planning

  • Process Development

  • Training

 Add Energy is established in key energy regions across the globe in close proximity to our clients. Our headquarters are in Stavanger, Norway, and we operate in offices located in Europe, Asia, North America and Australia.

 Throughout our last 30 years of global operation, Add Energy has become a trusted service provider to the energy industry. This is evidenced by a comprehensive client base and a growing pool of worldwide Master Service Agreements.

The solutions that we deliver are supported by a unique toolbox of proprietary software, and analytical tools developed in partnership with industry and academia. Our commitment to high standards and quality is demonstrated through our excellent client relationships and extensive repeat business. 

About Progressus
Progressus is a private equity investor providing capital and competence to growth companies in the oil and gas and technology sectors. Progressus currently manages two private equity funds with a committed capital base of NOK 550 million. Add Energy Group is part of the Progressus I fund.

We acquire controlling positions in businesses, and work closely with management teams to assist in expanding the businesses and driving growth plans. We believe great companies are developed through excellent leadership and strong management teams. We stimulate management to inspire enthusiasm among customers, employees and business partners – to create a winning culture throughout the organization.

Progressus seeks to act with the highest level of integrity. We have a strong focus on business ethics and corporate governance. Customers, employees, co-owners, suppliers and public authorities shall have full confidence in Progressus as an owner and in the management of our portfolio companies.

The management team of Progressus merged with EV Private Equity in 2015.

 

About Constellation Software Inc.
Constellation Software acquires, manages and builds vertical market software businesses that provide mission-critical software solutions.

About Vela Software
The Vela Operating Group is a global provider of software solutions to a number of vertical industries. As an Operating Group of Constellation Software, Vela acquires, manages, and builds specific software businesses which provide specialized, mission-critical software solutions. Vela companies invest in becoming leaders in their industries to better serve their customers. We help companies improve their operations, grow through organic initiatives, and seek acquisitions that can strengthen their market position. 

Add Energy appoints new Vice President to capitalise on rapid growth

Add Energy, the international energy consultancy and software provider, has appointed Damon Bowler as Vice President of its Asset and Integrity Management division.

 Left to right - Peter Adam, EVP and Damon Bowler, VP of Add Energy – Asset and Integrity Management

Left to right - Peter Adam, EVP and Damon Bowler, VP of Add Energy – Asset and Integrity Management

Dr Bowler will be fundamental in driving the firm towards achieving its ambitious growth plans by overseeing the direction of the division, with a specific focus on Aberdeen. He will also ensure that the infrastructure is in place to effectively deliver recently won projects, delivering value to customers.  

With more than 25 years’ experience in the energy industry, Dr Bowler has worked in a variety of leadership roles across the areas of safety, operations, reliability, maintenance and projects, both in the UK and overseas. He is a committed safety leader, currently chairing the Step Change in Safety Hydrocarbon Release Prevention working group and is author of the current offshore industry best practice guidelines.

Following a long career with Shell, Dr Bowler joined Add Energy in March 2017. Based in the company’s Asset and Integrity Management HQ in Aberdeen, he will build upon his earlier successes with the company as Project Manager for BP’s West Nile Delta project and as Programme Manager for new projects, including BP’s Tangguh Expansion Project in Indonesia.

He said: “This is a tremendous opportunity to play a pivotal role in the continued growth journey of Add Energy,  

“It is a constant evolution of exciting times for Add Energy as we go from strength to strength. My role will help to ensure that we have the right UK organisation in place to deliver this.”

Peter Adam, Executive Vice President of Add Energy, stated: “We have made this appointment to provide more support to projects, management teams and spread responsibility.

“The leadership team believes that these changes will be extremely positive for Add Energy and will allow Damon to better support the continued growth and strategic development of the business.”

Add Energy’s Asset and Integrity Management division has more than 170 employees across offices in Aberdeen, Houston and Muscat.  

Transborders Energy announces Joint Study Agreement with Add Energy

 Photo courtesy of Transborders Energy: Initial field development plan utilising Transborders Energy's Generic FLNG Solution

Photo courtesy of Transborders Energy: Initial field development plan utilising Transborders Energy's Generic FLNG Solution

Transborders Energy Pty Ltd is pleased to announce it has signed a Joint Study Agreement with Add Energy to work together in conjunction with a major Asian LNG buyer on the development of the Company’s Generic Floating LNG (FLNG) Solution.


The Joint Study will allow Transborders to enhance the technical and commercial robustness of its ground breaking low-cost Generic FLNG Solution for monetising stranded gas resources.


Specifically, the agreement provides for the parties to work together to enhance the technical and commercial definition of the Generic FLNG Solution and consists of:

  • Completing technical Pre-Front End Engineering and Design (Pre-FEED) for the development well scope of the Generic FLNG Solution
     
  • Completing negotiation of key terms of major agreements for underpinning the reserve booking as well as facilitating project sanction (FID).


The involvement of Add Energy in developing Transborders’ Generic FLNG Solution provides significant credibility and predictability of cost and schedule for the Company’s Generic FLNG Solution. It is anticipated that the Joint Study will be completed by early 2019 and provide a sufficiently mature product to be deployed on stranded gas resource opportunities.

Transborders_Energy_Logo.jpeg


Transborders Managing Director, Mr Daein Cha, stated: 
“We are very pleased to sign this Joint Study Agreement as another key milestone for the business. The ongoing support from Add Energy is fundamental to the development of our Generic FLNG Solution”.


Add Energy Vice President, Eduardo Robaina, stated:
“We are excited to enter into this agreement, as we see great potential in the low-cost concept and its ability to unlock uneconomic smaller natural gas resources. Many challenges remain in our industry. Therefore, we must bring innovating thinking for capturing market upside.”