Information on the Target

ExproSoft was founded in 2000 and has established itself as a leading company in well safety and data modeling. Originating from the Sintef environment in Trondheim, the company has been supported by Investinor as a shareholder since 2010. Both Investinor and Viking Venture III hold a 42.6% ownership stake in ExproSoft.

In 2014, ExproSoft executed a significant strategic transformation, shifting its focus from consultancy services to Software-as-a-Service (SaaS). This transition has proved successful, contributing to the company's growth and profitability in recent years.

Industry Overview in Norway

The oil and gas industry in Norway is one of the most developed sectors globally, known for its technological advancements and sustainability efforts. The country has a long history of oil production, and it is one of the largest exporters of natural gas in Europe. The Norwegian continental shelf has seen continuous exploration and development activities, driven by both local and international companies.

As the industry progresses, there is a strong focus on digitalization and automation, with companies increasingly adopting advanced technologies for operational efficiency. This trend has paved the way for firms focusing on data safety, modeling, and visualization, allowing for smarter decision-making processes.

Moreover, the Norwegian government continually promotes a stable investment environment, supporting innovation and helping established firms to thrive amid changing market dynamics. This favorable climate attracts a wide range of investors looking to capitalize on emerging technologies in the energy sector.

The Rationale Behind the Deal

The transaction between ExproSoft and Peloton is driven by a shared vision for innovation in the well safety and data visualization sectors. By aligning with Peloton, which has been a leader in international well data and visualization for over 25 years, ExproSoft is positioned to leverage synergies and broaden its market reach.

This acquisition is anticipated to enhance ExproSoft's service offerings and foster further development amid a challenging market. The newly formed partnership will enable the company to innovate and grow, expanding its revenue and workforce.

Information about the Investor

Peloton is recognized globally for its cutting-edge technology, servicing over 500 oil and gas companies worldwide. The firm has established a strong foothold in the industry through the innovative solutions it provides, especially in the areas of well data management and visualization.

Under the leadership of Glen Gray, Peloton aims to capitalize on new opportunities that arise even in challenging circumstances, such as during the COVID-19 crisis. The acquisition of ExproSoft aligns with Peloton’s strategic objective to integrate and enhance its technological offerings within the energy sector.

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The acquisition of ExproSoft by Peloton represents a strategically calculated move that could yield positive returns for both parties involved. The alignment of their technologies and target clients establishes a strong foundation for future growth and collaboration.

By transitioning to SaaS, ExproSoft has positioned itself in a burgeoning segment of the industry that is increasingly favored by clients seeking efficient and scalable solutions. This gives the investor considerable confidence in the viability and profitability of the investment.

Moreover, Peloton’s extensive network and industry expertise present a significant advantage for ExproSoft, facilitating market penetration and enhancing customer engagement. Overall, this acquisition is deemed a promising investment that could stimulate growth and innovation in a competitive environment.

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