Prometheus Group’s Acquisition Of Engica Takes Out Another ORM Software Vendor
On October 24th, asset management and maintenance software provider Prometheus Group acquired Engica, one of the few remaining standalone operational risk management (ORM) software vendors. Terms of the deal were not disclosed. Based on prior deals, Engica’s financial performance, 3 year growth rate and standard industry metrics, Verdantix estimates the firm was valued at between $9 million and $14 million. Founded in 1981 and headquartered in Gateshead in the UK, the approximately 30 employees at Engica provide a broad suite of software modules to support control of work, process safety, shift and incident management. Customers include Dolphin Energy and NOMAC.
Engica was one of the few remaining standalone operational risk management software vendors which provide software for control of work, process safety management and barrier risk management. Among operations and engineering managers in asset intensive sectors the vendor was relatively well known given its small size: 53% of 284 respondents in the recent Verdantix brand survey were aware of Engica and placed it tenth on the list of twenty vendors in terms of brand preference. The ranks of independent ORM software vendors have been decimated in the last 12 months. Wolters Kluwer started the stampede with their purchase of eVision for $145 million in October 2018. This was followed by Genstar-backed Sphera purchasing Petrotechnics in January 2019. Prometheus Group is also owned by Genstar which raises interesting questions about a potential tie-up between Sphera and Prometheus. Hexagon then bought j5 International and Yokogawa bought RAP International in September 2019.
Clearly many technology strategists see an emerging trend in the market. What is the big reveal? Industrial IoT strategies of firms in asset intensive sectors create the potential for integrated real-time risk management. This is because data about asset risks and human factors risks can be pulled together into a single software model which then enables an integrated approach (across assets and workers) to controlling risks. The new age of industrial risk management will combine dynamic barrier risk management models, real-time control of work systems and digital twin simulations to reduce unplanned downtime as well as mitigating serious injuries and fatalities. That’s why asset performance management vendors like Yokogawa are just as interested in the opportunity as EHS vendors like Sphera. Let the battle for customer mindshare begin!
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