Apax, JMI Team Up To Acquire E&P Software Provider Paradigm

To purchase software vendor providing services to enable engineers to optimize drilling & production decisions with seismic & well-log data.

Funds advised by London-based private-equity firm Apax Partners and Baltimore-based private-equity JMI Equity have today announced an agreement to acquire London-based Paradigm Ltd. for approximately $1 billion in an all-cash transaction.

Paradigm is the largest independent software vendor focused on E&P space, with a significant presence across Europe, the Americas, the Middle East, Africa, China and Australasia. Paradigm’s mission critical software enables engineers to optimize drilling and production decisions through the analysis of vast quantities of seismic and well-log data, spanning the entire spectrum of the E&P lifecycle from basin evaluation through to development & production.

Paradigm chief executive Eldad Weiss says, “It is exciting for Paradigm to team up with Apax and JMI. With their backing, Paradigm is ready to further accelerate its top line and market share growth and capitalize on the opportunities its market position and leading technologies present.”

Apax senior partner Ian Jones says, “Paradigm has invested considerable time and money in developing market-leading intellectual property, and employs many of the leading scientists and software engineers in the sector. As such, it is well-placed to benefit from strong tailwinds in the coming years as energy companies look to drill in more challenging locations.”

Bank of America Merrill Lynch and Simmons & Co. are financial advisers to Apax and Kirkland & Ellis LLP provided legal advice. UBS and Royal Bank of Canada provided debt financing. Jefferies & Co. Inc. is adviser to Paradigm and Skadden, Arps, Slate, Meagher & Flom LLP provided legal and PwC financial advisory services.