CALGARY, Alberta, March 25, 2026 (GLOBE NEWSWIRE) -- Computer Modelling Group Ltd. ("CMG" or the "Company") (TSX: CMG) today announces that it has acquired Rose Subsurface Assessment ("Rose"), a globally recognized provider of probabilistic subsurface risk analysis and resource assessment software, training, consulting, and operator consortium services for the global exploration and production industry.
Key Acquisition Highlights
- Purchase consideration USD?$9.8 million, consisting of USD?$8.8 million paid in cash at closing, plus an amount equivalent to Rose's cash on hand immediately prior to closing, with the remainder subject to a customary holdback, and a potential earn-out of up to USD?$2.5 million tied to performance milestones
- Trailing twelve-month (TTM)1 revenue approximately USD$6.8 million
- Recurring revenue2 represents over half of total revenue
- Peter Carragher, currently Managing Partner at Rose, to be appointed as General Manager
"Rose is a recognized leader in probabilistic subsurface risk assessment, trusted by operators around the world for its rigorous methodology and decades of calibration," commented Pramod Jain, Chief Executive Officer, CMG. "In welcoming Rose to CMG, we're expanding our geoscience capabilities with a solution that is both scientifically robust and highly respected in the market. Rose's software and expertise complement CMG's seismic and reservoir simulation solutions in the operator workflow, creating a natural extension of our offerings. Its deep customer relationships and compelling software adoption potential make this an exciting acquisition for us. We are very pleased to welcome the Rose team to CMG."
Peter Carragher, Managing Partner at Rose, commented, "We are incredibly proud of the business and the community of clients we've built over many years. What makes this next step meaningful is that both Rose and CMG are recognized for working closely with customers and delivering a level of service and expertise that sets us apart in the industry. Our shared commitment to deep technical engagement and responsive support creates a strong foundation for the future, and we see significant opportunity to extend that impact as part of CMG."
About Rose
For decades, Rose has set the industry standard in probabilistic resource assessment and subsurface risk analysis. Its flagship software, Geo Risk Analysis Studio, enables a key piece of the subsurface workflow and enables operators to make better risk-informed decisions on exploration prospects, development planning, and portfolio management in both oil and gas and carbon capture and storage projects.
Rose operates two proprietary operator consortiums with over 30 members each, providing access to 25 years of calibration data and peer benchmarking. In addition, Rose offers specialized training programs grounded in its statistical methodology, as well as consulting services that support operators in applying Rose's approach within their subsurface workflows.
For more information, visit www.roseassoc.com.
About CMG
CMG (TSX: CMG) is a global software and consulting company that combines science and technology with deep industry expertise to solve complex subsurface and surface challenges for the new energy industry around the world. CMG is headquartered in Calgary, AB, with offices globally. For more information, visit www.cmgl.ca.
1 TTM revenue is unaudited and for the period of January 1, 2025 - December 31, 2025
2 Recurring revenue is a non-IFRS measure. See "Non-IFRS" Measure
For investor inquiries, please contact:
Kim MacEachern
Director, Investor Relations
cmg-investors@cmgl.ca.
For media inquiries, please contact: marketing@cmgl.ca.
Non-IFRS Measure
Recurring revenue represents the revenue recognized during the period from contracts that are recurring in nature and includes revenue recognized as "Annuity/maintenance licenses" and "Annuity license fee" in our Financial Reports.
See "Recurring revenue" heading in the Q3 2026 Financial Reports at www.cmgl.ca/investors or at www.sedarplus.ca for a reconciliation of Recurring revenue to total revenue.
Forward-Looking Statements
This press release contains "forward-looking statements". Forward-looking statements can be identified by words such as: "potential", "intend", "can", "believe", "estimate", "expect", "strategy", "future", "likely", "may", "should", "will", and similar references to future periods. Examples of forward-looking statements include, among others, statements made regarding the contingent consideration that is potentially payable in connection with the Rose acquisition.
Forward-looking statements are neither historical facts nor assurances of future performance. They are based only on our current beliefs, expectations, and assumptions regarding the future of our business, future plans and strategies, projections, anticipated events and trends, the economy, and other future conditions. Because forward-looking statements relate to the future, they are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict and many of which are outside of our control. Our actual results and financial condition may differ materially from those indicated in the forward-looking statements. Therefore, you should not rely on any of these forward-looking statements. Important factors that could cause our actual results and financial condition to differ materially from those indicated in the forward-looking statements are detailed in the companies' public filings.
Any forward-looking statement made by us in this press release is based only on information currently available to us and speaks only as of the date on which it is made. Except as required by applicable securities laws, we undertake no obligation to publicly update any forward-looking statement, whether written or oral, that may be made from time to time, whether as a result of new information, future developments or otherwise.
