Business/economics

Emerson to Buy Paradigm

Emerson will increase its foothold in the oil and gas industry with the purchase of software maker Paradigm.

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Emerson announced that it would acquire Paradigm, a well-known provider of oil and gas software, for $510 million. The acquisition will expand the company’s Roxar software business to create an “end-to-end E&P software portfolio with offerings spanning seismic processing and interpretation to production modeling,” the company said.

 “This acquisition is a significant technology investment that meets our customers’ growing demand for an independent, global provider of E&P software solutions,” said Emerson Chairman and Chief Executive Officer David N. Farr. “Paradigm broadens our leadership in the upstream oil and gas market by adding a range of subsurface software tools that complement our growing automation solutions portfolio.”

Paradigm, which has headquarters in Houston, has more than 500 employees globally. The company provides an array of tools that enable customers to gain deeper insight into the subsurface, specializing in seismic data interpretation and imaging, interpretation and modeling, and reservoir characterization.

Emerson has been in talks to buy Paradigm for weeks, according to published reports, in an attempt to gain a bigger foothold into the oil and gas industry. Earlier this month, Emerson announced that it would purchase GeoFields, a supplier of software and services for pipeline integrity data collection.

The acquisition is expected to close within the next 60 days.