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Quorum seeking new owner: WSJ
Posted on Tuesday, 10 July 2018 14:33
Quorum Business Solutions is exploring a possible sale, according to the Wall Street Journal.
Reuters picked up on an article by the publication, which cited sources close to the matter as saying news of a potential deal follows a resurgence in oil prices, including brent crude LCOc1, which has increased in value by 19.0 per over the last 12 months.
The WSJ sources added that Quorum has hired Credit Suisse to advise on the sales.
Formed in 1998, the Texas-headquartered company specialises in providing business management software to clients in the oil and gas industries.
Quorum’s products are designed to aid customers in the land management, energy marketing and plant accounting fields, among others.
It also features products that enable clients to manage assets, using geographic information systems and web based lease management to compile data on upstream oil and gas.
According to the WSJ, Quorum is expected to generate earnings before interest, taxes, depreciation and amortisation of around USD 43.00 million in 2018.
The news provider also reported that both private equity and corporate buyers are likely to be interested in an acquisition of the business.
Should a deal go ahead, it would represent an exit for Silver Lake Technology Management, which acquired Quorum alongside members of the management team for USD 310.00 million in 2014.
According to Zephyr, the M&A database published by Bureau van Dijk, there have been 2,116 deals targeting software publishers announced worldwide since the beginning of 2018.
The largest of these is worth USD 5.40 billion and took the form of an acquisition of financial and healthcare services software developer DST Systems by SS&C Technologies Holdings.
Other companies in the sector to have been targeted this year include the likes of Xiaoju Kuaizhi, Beijing Mobike Technology, VeriFone Systems and SUSE.
© Zephus Ltd