Last month, following Paradigm’s acquisition of Earth Decision, we asked if it was time for an initial public offering (IPO). Paradigm CEO John Gibson has answered our rhetoric by filing an ‘S1’ form to the US Securities Exchange Commission (SEC) as a preamble to a public offering.
Cayman Islands-registered Paradigm Ltd.’s S1 form is a template for the placement of an unspecified number of Paradigm shares. The S1 includes a prospectus for a future holder for the IPO which, citing a 2005 IDC study, estimates the global oil and gas software spend as around $8 bn., with growth to $11 bn. Forecast for 2009. Paradigm’s share of this cornucopia was approx. $100 million in 2005.
$56 million for EDS
Intriguingly, although the price paid for EDS was a state secret last month, purchase details are there for all to see in the Prospectus. Paradigm paid $56 million for EDS including approximately 3 million shares in its Paradigm Geotechnology unit, $2.7 million in cash and a further $8.9 million convertible debentures and ‘fees and expenses’. The Prospectus also reveals ongoing litigation between Paradigm and Landmark concerning GeoProbe and VoxelGeo (more on page4).
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