Fox Paine and Company has sold Paradigm, a provider of geoscience software, to Apax Partners and JMI Equity in a $1 billion cash merger transaction.
Paradigm is a provider of geoscience software used in the exploration, discovery, and extraction of natural gas, oil, and other subsurface resources. The company is based in Houston (www.pdgm.com).
Fox Paine Fund II, which acquired then publicly traded Paradigm (NASDAQ: PDGM) in August 2002, realized a 7.8x return on the fund’s $83 million investment in the company. Overall to date, Fox Paine Fund II, which was established in 2000 with $1 billion in capital commitments from investors, has achieved a 40% per year net compounded annual return on all invested capital, including six platform corporate acquisitions, company growth initiatives, and “follow-on” acquisitions.
Fox Paine focuses on investing in special situations where the firm believes that its long-term strategic approach may assist a company’s efforts to significantly enhance enterprise value. The firm was founded in 1996 by Saul Fox and is based in Woodside, CA (www.foxpaine.com).
“Paradigm’s extraordinary growth over the course of our 10 year association is a result of the company’s unremitting commitment to geoscience and computational research and development, rapidly deploying the results of its prodigious research and development programs to create novel and continuously improve existing exploration and production solutions, and an unflagging commitment to serve and advance the interests of the company’s customers as well as the energy industry more generally,” said Saul Fox, Fox Paine’s CEO.
© 2012 PEPD • Private Equity’s Leading News Magazine • 8-31-12
