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]
Incident Investigations and Support
Performance Analysis and Management
Reporting and Benchmarking
Production Studies, Testing and Planning
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.
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.