Thoma Bravo has agreed to sell the MOSAIC product of portfolio company Quorum Software in response to a challenge from Ottawa’s Competition Bureau.
As part of the agreement, MOSAIC’s purchaser must be acceptable to the Commissioner of Competition.
In June, the Bureau said Thoma Bravo’s ownership of the two largest energy reserves software businesses in Canada, Quorum and Aucerna, was likely to reduce competition. It sought an order requiring the sale of either MOSAIC or Aucerna’s Val Nav.
Thoma Bravo announced the acquisition of Aucerna, a Calgary-based provider of planning, execution and reserves solutions to the oil and gas industry, in February.
Competition preserved in the supply of oil and gas reserves software in Canada
August 20, 2019 – OTTAWA, ON – Competition Bureau
Today, the Competition Bureau reached an agreement with Thoma Bravo to address competition concerns related to its recent acquisition of Aucerna.
Following an investigation, the Bureau found that the transaction, which closed on May 13, 2019, resulted in a merger to monopoly in the supply of oil and gas reserves valuation and reporting software to medium and large producers in Canada.
On June 14, 2019, the Bureau challenged the acquisition by filing an application with the Competition Tribunal. In that application, the Bureau sought an order requiring Thoma Bravo to sell either MOSAIC or Value Navigator, which are the reserves software products owned by its portfolio companies Quorum and Aucerna.
Under the terms of a consent agreement registered with the Competition Tribunal, Thoma Bravo agreed to sell Quorum’s MOSAIC business to a purchaser acceptable to the Commissioner. The Commissioner is satisfied that this agreement will preserve competition in the market for reserves software in Canada.
The Bureau will publish a position statement on its review in the coming days, which will include greater detail regarding the Bureau’s analysis.
“I am pleased that our enforcement action in this matter has resulted in a settlement that will preserve competition in the supply of oil and gas reserves software in Canada. Without enforcement action, the merger would have resulted in a monopoly, leading to a substantial lessening of competition – resulting in higher prices and a lower quality of service for customers in Canada. Protecting the competitive forces that drive innovation in our economy is of the utmost importance to the Bureau.”
Commissioner of Competition