CMG Expands Its Software Solutions with SeisWare Purchase
CMG Enhances Its Offerings with SeisWare Acquisition
Computer Modelling Group Ltd. (TSX: CMG), a renowned player in the software industry, recently took a significant step by acquiring SeisWare International Inc. This strategic move not only reflects CMG's commitment to enhancing its software solutions but also positions it for future success in the geoscience arena.
About SeisWare International Inc.
Located in Calgary, SeisWare has made a name for itself by providing sophisticated geoscience interpretation software. Their platform is designed to assist companies in the oil and gas sector with seismic interpretation, geological mapping, and 3D well design. These tools are essential for optimizing subsurface exploration and development projects.
Strategic Vision of CMG's CEO
Pramod Jain, the CEO of CMG, expressed excitement over the acquisition, noting, "SeisWare epitomizes our disciplined approach to expanding capabilities through high-quality software acquisition. The firm enjoys a strong reputation with a loyal customer base, mainly due to its excellent integrated tools and responsive customer service.” This acquisition will strengthen CMG's suite of seismic interpretation solutions, aligning with its goal to invest in valuable businesses for sustainable growth.
Financial Performance of SeisWare
In the fiscal year ending March 31, 2025, SeisWare reported an unaudited revenue of approximately US$3.4 million, driven solely by recurring software revenue. This steady income underscores the stability and reliability of SeisWare's products in the market.
Acquisition Details and Future Leadership
The total purchase price for SeisWare is estimated to be around US$6.6 million and is subject to conventional closing adjustments. In a significant organizational change, Herman Nieuwoudt has been promoted to Executive Vice President and President of Seismic Solutions at CMG. This role involves overseeing all seismic technologies, which aligns SeisWare's 40 employees from Calgary and Houston within this division. Moreover, Murray Brack will step in as General Manager of SeisWare, reporting directly to Nieuwoudt.
Shared Values for Continued Success
Murray Brack commented on the acquisition, stating, "Joining CMG represents a natural progression for us, rooted in our shared Canadian heritage and commitment to exceptional customer service. It is encouraging to recognize how closely our values align, particularly in our dedication to creating specialized, technical software for the evolving energy sector." This shared vision is crucial as both companies look to thrive in a challenging market landscape.
About Computer Modelling Group
CMG (TSX: CMG) is a global software and consulting firm that marries scientific ingenuity with industry expertise. Headquartered in Calgary, AB, CMG operates offices worldwide, including locations in Houston, Oxford, and Dubai. This international presence allows CMG to effectively tackle complex subsurface and surface challenges in the new energy industry.
Contact Information for CMG
For investor inquiries, CMG can be reached through Kim MacEachern, Director of Investor Relations at cmg-investors@cmgl.ca. For media-related questions, inquiries can be sent to marketing@cmgl.ca.
Frequently Asked Questions
What is the primary business focus of SeisWare?
SeisWare specializes in developing geoscience interpretation software that supports subsurface exploration and development projects.
How much did CMG pay for the acquisition?
The total purchase price for SeisWare is estimated at US$6.6 million.
Who is overseeing SeisWare following the acquisition?
Herman Nieuwoudt has been promoted to Executive Vice President and President, overseeing Seismic Solutions at CMG.
What type of revenue did SeisWare generate in its last fiscal year?
SeisWare generated approximately US$3.4 million in unaudited revenue, all from recurring software sales.
How does CMG plan to integrate SeisWare's offerings?
CMG aims to incorporate SeisWare's technologies to enhance their seismic interpretation solutions, fostering growth and customer support.
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