Brady plc acquires the energy trading company Navita Systems AS
On 9 March 2012, Brady plc entered into an agreement to acquire 100% of the shares in Navita Systems AS for NOK 157 million.Navita provides software that offers a unique overview of the opportunities and risks in energy trading. Towards the end of the 1990s, the company established a leading position in the Norwegian market for physical power trading, and in 2003 the company launched an expansion into financial power trading. Since then, Navita has developed into a European leader in decision support systems for physical and financial trading in the energy sector.
"Energy trading is a market in strong growth. Norway and the Nordic countries were among the first to end the monopoly conditions in the energy sector. This gave Navita the opportunity to develop innovative and reliable software solutions to assess rates and risks, thus ensuring optimal returns for users of the software," said Navita's CEO, Knut Johansen.
Spin-off
Viking Venture invested in Navita together with Statoil Technology Invest (formerly Norsk Hydro Technology Venture) in 2004. The software for gas trading that had been developed in-house at Hydro was then integrated into Navita. This created the foundation for stronger commitment and focus in the area. Through Navita, Statoil and Viking Venture have once again helped to build a Norwegian technology company with international success.
"The investment has yielded gratifying returns. Navita has also become established as a sought-after and profitable provider, to our own operations as well as others," said Sigurd Paulsen, Investment Director at Statoil.
Vigorous growth strategy
Viking Venture has considerable expertise in the international energy market through active ownership in a number of portfolio companies. The company contributed to Powel's introduction on the Oslo Børs stock exchange in 2007. "Our goal has been to make Navita a profitable and leading European player. We have achieved this by supplying capital and through a vigorous growth strategy focused on the international energy market," said Joar Welde, partner at Viking Venture.
He highlights the acquisition of two smaller UK companies as an important contribution to this growth. "The acquisitions would have been difficult without the support from Statoil and Viking Venture," said Welde.
To be based in Halden, Norway
The two leading companies in energy trading in Europe today are both Norwegian. Viz Risk Management Services AS, based in Bergen, was acquired by Brady in 2010. The acquisition of Navita strengthens Brady's commitment to decision support systems for energy trading. The companies will form the core of the business unit Brady Energy. The unit is based in the well-established IT environment in Halden, with Knut Johansen as CEO.
"The fact that Navita is now becoming part of Brady creates great strategic and commercial opportunities to strengthen Navita's position on the global energy market. We believe Brady's complementary solutions, market coverage and financial strength will accelerate our growth," adds Johansen.
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For more information, please contact − Knut Johansen, telephone +47 909 81 318, email: knut.johansen@navita.com
− Viking Venture AS: Joar Welde, Partner, telephone +47 982 06 930, email: joar.welde@vikingventure.no
− Statoil Technology Invest AS: Sigurd Paulsen, Investment Director, telephone +47 916 41 493, email: smp@statoil.com
About Navita Systems AS
Navita Systems AS is a leading European provider of decision support systems for efficient transaction and risk management in the energy market. Since 2004, the company has grown from revenues of NOK 37 million to NOK 105 million.
The business is a result of R&D activity related to energy trading managed by the Institute for Energy Technology in Halden, where the world's first system for an energy exchange and competition-based energy trading was developed. Navita Systems AS was commercially established through Hand-El Skandinavia AS and OMX, and is based on many years of experience in activities related to energy trading and associated risk management. The Norwegian Centre of Expertise programme for cluster development, organised by Innovation Norway, SIVA and the Research Council of Norway, has also been an important contributor to the development of Navita and the international IT environment in the Halden region.
Today, Navita has major international energy companies on its client list. They include Statkraft, E.ON and Vattenfall. Navita also has more than a hundred installations in the Nordic countries, Europe, North America and Asia. Navita has offices in the USA, Canada, the UK, and Germany.
In Brady plc, Navita will constitute the business area Brady Energy. The unit will be headquartered in Halden, led by Navita's CEO, Knut Johansen. See www.navita.com.
About Brady plc
Brady plc is a leading global provider of solutions for risk management and trading in the business areas of metal and minerals, energy and agricultural commodities. In recent years, the company has strengthened the business area Brady Energy through the acquisition of robust international companies. Brady plc is headquartered in Cambridge, UK, with offices in the USA, Europe and Asia. See www.bradyplc.com.
About Viking Venture AS
Viking Venture, based in Trondheim, Norway, is one of the leading Nordic venture funds focused on technology, with NOK 1.2 billion under management. Viking Venture invests in growth-phase companies in electronics and software as well as in oil and gas. Through active ownership, Viking Venture contributes capital, business development, recruitment, strategy development and sales processes to the companies. The fund is a very active owner with a substantial stake in its portfolio companies. See www.vikingventure.no.
About Statoil Technology Invest
Statoil Technology Invest invests in innovation in both start-up businesses and established industry. The company focuses on the development and commercialisation of new technology. This includes the development of products and prototypes, testing and verification, and development of marketing strategies. Statoil contributes technical expertise, user definition, project management, pilot testing, networking and financial support. See www.statoil.com.