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AddEnergyGroup sells subsidiary to Canadian listed Constellation Software Inc.

Tuesday, October 2, 2018

Add Energy Group, a global leader in engineering and advisory services relating to drilling, completion, testing, servicing, asset integrity and well kill of onshore and offshore wells, is pleased to announce that it has sold its subsidiary Add Novatech AS to Vela Operating Group ('Vela'), a wholly owned division of Canadian listed software company Constellation Software Inc (TSX:CSU).

Add Novatech develops and sells an environmental software suite for calculating, forecasting and follow-up of emissions and discharges for the international oil & gas industry. With 3 decades of experience with environmental compliancy issues and developing the best solutions to meet the clients' needs, Add Novatech is a preferred partner for the industry.

Add Novatech became a part of Add Energy Group in 2008 when the company was acquired from the original founders. Since then the strategy has shifted from being an environmental consultancy to a cloud-based software company.

In a statement on the transaction Add Energy Group CEO Ole Rygg stated that 'As Add Novatech developed into a pure cloud-based software company, we recognized that other owners could internationalize and grow the company, also outside the oil industry, in a better way than we could do within Add Energy Group. As such we are pleased that Add Novatech now becomes a part of a global software company with huge competence, experience and reach within software development and sales'.

Add Novatech will join a growing group of industry leading companies serving the energy and resources vertical markets within Vela Software. Gabor Czegledy, Vela Software's Portfolio Manager overseeing these end markets, provided additional comments on the transaction: 'We are very excited with our newest addition to the portfolio. This gives us a platform in the critically important asset environmental compliance segment for offshore oil and gas exploration and production. As permanent-hold investors, we are eager to partner with Add Novatech's industry-leading employees and customers for the long-term.'

The consideration paid for Add Novatech in the transaction is undisclosed, but in a comment Add Energy Group Chairman Per Arne Jensen, representing main owner PE fund Progressus, states that 'The value is in line with international valuation of software-as-a-service companies and represents a substantial multiple on invested capital'.

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