Sphera Acquires Petrotechnics: Establishing The Broadest ORM Software Offering From An Independent Software Vendor
EHS and product stewardship software vendor, Sphera announced on January 8, 2019 that it had acquired Scotland-headquartered Petrotechics, one of the most prominent operational risk management software vendors, for an undisclosed sum. The deal puts Sphera’s 600 employees together with more than 80 employees at Petrotechnics creating by far the largest, standalone EHS and operational risk management (ORM) software vendor by employee numbers. The publicly-disclosed revenues of Petrotechnics for the year ending March 31, 2018 were £7.1 million representing growth of 9% compared to the prior year. For the year ending March 31, 2018 Petrotechnics made a loss of £2.9 million. Reflecting a competitive sale process and standard valuation metrics for software businesses Verdantix estimates the purchase price at between £21 million and £28 million.
Sphera’s purchase of Petrotechnics comes on the heals of Sphera’s acquisition of sparesFinder, another UK firm which has a maintenance, repair and operate master data management offering. This earlier acquisition complemented the strong process safety functionality in the SpheraCloud and also the Sphera MRO application. With this quartet of software and content assets, among standalone software vendors, Sphera undoubtedly now offers the broadest range of functionality for operational risk management. This is in large part due to the impressive breadth and depth of the Petrotechnics Proscient software which can be deployed on premise or in a single tenant cloud. This aligns with the migration of Sphera from its legacy or “core” on premise applications to the SpheraCloud platform. Petrotechnics has 50 customers, including Anadarko, BASF, Crossrail and Petronas.
Current Sphera customers such as Alcoa, Encana and ExxonMobil will benefit from the market-leading operational risk management functionality built into the Proscient platform. Firstly, Proscient’s functionality for control of work processes – permit to work, job hazard analysis and isolation management – is very impressive, according to the forthcoming ORM software benchmark from Verdantix which is based on live product demonstrations from 17 software vendors. Secondly, the Petrotechnics Proscient application also has powerful functionality for interdependent risk analysis which is embedded in the barrier management module. This provides Sphera with a product development path towards digital twin simulations for industrial risk management.
To learn more about the operational risk management software market download the Verdantix report “The Future Direction Of Operational Risk Management Software”.