Business
CMG Announces the Acquisition of Bluware-Headwave Ventures Inc.
Adding data management solutions and AI-driven seismic interpretation CALGARY, AB / ACCESSWIR...
About this update from Computer Modelling Group Ltd.
[{"type":"text","content":"CMG Announces the Acquisition of Bluware-Headwave Ventures Inc.Adding data management solutions and AI-driven seismic interpretationCALGARY, AB / ACCESSWIRE / September 25, 2023 / Computer Modelling Group Ltd. (\"CMG\" or the \"Company\") (TSX:CMG) is pleased to announce the acquisition (the \"Acquisition\") of Bluware-Headwave Ventures Inc. (\"Bluware\"), a software and services company specializing in cloud and interactive deep learning solutions for subsurface decision-making including seismic interpretation.\"Acquiring Bluware is a step forward in the company's growth strategy of investing in strong technologies that both expand our portfolio of upstream energy solutions and deliver attractive rates of return,\" stated Pramod Jain, Chief Executive Officer of CMG. \"With Bluware, we are building on our expertise in cloud delivery, advanced technologies, and data management which allows us to deliver improved workflows and collaboration with increased speed, performance, and accuracy.\"Bluware's proprietary VDSTM (Volume Data Storage) data format compresses raw and interpreted seismic data sets, making them adaptable and scalable. It enables fast data access, cost-effective cloud storage, and compute-intensive workflows. The company's flagship product, InteractivAITM , is a cloud-native software solution that leverages VDSTM to deliver an interactive AI tool, compressing seismic fault interpretation timelines from months to days through the combination of expert user input and cutting-edge deep learning.In the most recently completed fiscal year, Bluware reported total revenue 1 of US$23.5 million (US$17.7 million from services and US$5.8 million from software) and an estimated Adjusted EBITDA1,2 margin of 5%.Total consideration paid by CMG for the Acquisition is US$22 million. In addition, there is a potential earn out provision of up to US$8 million if certain revenue thresholds related to key contracts of Bluware are met during the 18-month period after closing.1 Revenue and Adjusted EBITDA figures are unaudited for the period January 1, 2022 - December 31, 2022. In addition, Bluware reports in US GAAP2 Adjusted EBITDA is a non-IFRS measure. See \"Non-IFRS Measure\"WebcastCMG will host a webcast today, September 25th, 2023, at 8 am MDT (10:00 am EDT) to discuss the transaction.. The webcast can be accessed at www.cmgl.ca/in...