Enautech, a private Victoria, Australia-based developer of state-of-the-art blowout preventer (BOP) software solutions for the oil and gas industry, is testing buyer interest as it gears for global commercialization, said co-founder Dusan Matejic.
Enautech is working with a US-based M&A advisory firm and has had buyer interest from two US-based parties. It welcomes approaches from advisors with introductions to other interested buyers, Matejic said.
The company, which is solely owned by Matejic and his co-founder, will appeal to strategic buyers operating in the resources or enterprise software sectors, as well as operating, service or contracting companies in the oil and gas sector globally, including the US, Canada, Europe, Asia and the Middle East, Matejic said.
Founded in 2018, Enautech has built a vivid and transparent interface between engineers and any BOP’s hydraulic control system via its product BOP Simulator, allowing users to quickly and accurately determine critical system parameters like operating limits, safety factors, and system flaws, he said.
The deal would include a transfer of all the company’s assets including IP, professional networks and global contracts. It has trialed its product with several global firms, with existing relationships including global master service agreements with ABL Group [FRA:26Q]-owned Norway-based Add Energy, Perth-based consultancy Drill Insight, and Malaysia-based oil and gas tech Faazmiar, Matejic said.
Enautech offers buyers a rare opportunity to be first to market with the only BOP Simulator software package that is currently commercially available in the oil and gas sector, Matejic said. It also offers buyers an opportunity to secure a low overhead business with a recurring revenue model and profit margins of at least 95% in a total addressable global market of more than 8,000 users, he added.
Enautech’s co-founders are willing to accommodate an extended handover period and provide business continuity and global scaling support, including 24/7 technical support, technical training on the BOP Simulator, marketing and sales support, product demonstrations to clients, and presentations to local and international regulators and governments, Matejic said.
The company currently has limited competition due to high barriers to entry, with some three years of full-time IP and development cost required to enter the space, he added. The cost to scale globally is, however, low and there is a high likelihood that Enautech’s solution will become the industry standard for BOP emergency system simulation, he noted.
With current manual calculations resulting in numerous catastrophic health and safety, and reputational and financial errors, there is increasing pressure from both industry and governments to ensure that BOP emergency systems are simulated correctly, making it even more difficult for users to comply without using BOP Simulator, Matejic said.
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