Aspen acquires Icarus
6 Sep 2000
Aspen Technology have closed a transaction to acquire Icarus Corporation, a provider of software that is used by the process manufacturing industries to estimate plant capital costs and evaluate project economics.
The acquisition will enable AspenTech to provide even greater value to companies in the process industries, by integrating the Icarus financial decision-making tools with AspenTech's manufacturing modelling, asset optimisation and supply chain offerings.
Because the new integrated solution will combine analysis of engineering as well as economic considerations, it will enable process manufacturers to increase the quality and speed of decision making – while reducing costs – whenever major capital investment decisions are required, such as in building new plants or revamping existing facilities.
Today, the process manufacturing industries spend more than $300 billion annually in new capital investments. The cost of a world-class process facility can exceed $1 billion.
Capital investment decisions are based on numerous variables including input from investment analysts, engineering teams, construction teams, operations and maintenance. By combining the Icarus financial decision making tools with AspenTech's proven process industry solutions, these variables can be analysed, modelled and optimised – with the use of real plant data – in order to achieve the best return on investment.
The Icarus software contains a knowledge database built through many years of experience in use by leading companies including Bayer, BASF, BP, Chevron, Dow Chemical, Fluor Daniel, Kellogg Brown & Root, and Shell.
AspenTech and Icarus have been working together as alliance partners since 1998 and have already integrated their products for several major customers.
AspenTech paid $24.5 million in a combination of cash and stock to acquire Icarus. Icarus reported total revenues of $11.3 million and profitable operations in its most recent fiscal year.
AspenTech will account for this acquisition as a purchase, and excluding one-time charges it will be non dilutive in the fiscal year, ending June 30, 2001.
Icarus Corporation is at www.icarus-us.com Aspen Technology is at http://www.aspentech.com
