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EXHIBIT 99.1 TO ASPEN TECHNOLOGY, INC. FORM 8-K FILED JUNE 28, 2000
ASPEN TECHNOLOGY ACQUIRES PETROLSOFT, LEADING SUPPLY CHAIN PROVIDER TO THE
PETROLEUM INDUSTRY
Merger Creates the Only End-to-End Supply Chain Solution for the Petroleum
Industry-Spanning from Acquisition of Crude Oil Through Distribution of
Petroleum Products to Retail Market
CAMBRIDGE, Mass., June 1 -- Aspen Technology, Inc. (Nasdaq: AZPN - news), the
leading provider of enterprise optimization and extended supply chain solutions
for the process industries, today announced the acquisition of Petrolsoft
Corporation, a leading supplier of web-enabled supply chain software for the
downstream petroleum industry. With this acquisition, AspenTech now offers the
first integrated solution for optimization and automation of the entire supply
chain for petroleum companies, from crude selection, to refining, to delivery of
products to the consumer. This unique, integrated solution will enable the oil
and gas industry to improve profit margins by managing their supply chains more
efficiently.
The acquisition combines Petrolsoft's supply chain software with AspenTech's
Enterprise Optimization(TM) solution for refining, including the Aspen PIMS(TM)
product for planning and scheduling. The integrated solution will deliver value
by uniting planning and scheduling at the refinery with the distribution of
products to retail customers. Based in San Diego, Petrolsoft develops and
markets supply chain software that enables petroleum companies to improve profit
margins by reducing overhead, excess inventory and distribution costs, which are
critical determinants of profitability. With its industry-specific solutions for
distribution scheduling and inventory management, Petrolsoft has established a
worldwide customer base that includes clients such as Arco Products Company, BP
Amoco, Chevron, ExxonMobil, Marathon Ashland Petroleum and Sunoco.
AspenTech issued approximately 2.6 million shares of common stock in the
acquisition, which will be accounted for as a pooling-of-interests transaction.
Privately-held, Petrolsoft currently has approximately 50 employees and posted
calendar 1999 revenues of approximately $4.0 million and operating margins of
approximately 20 percent. Excluding one-time charges of about $1.5 million,
AspenTech believes the acquisition will be non-dilutive to its calendar year
2000 earnings and accretive in calendar year 2001.
"By adding Petrolsoft's capabilities in demand management and distribution
logistics to our Enterprise Optimization solution, we believe our unique
solution can deliver significant benefits to the $1 trillion global petroleum
industry," said Larry Evans, Chairman and CEO of AspenTech. "The timing of this
acquisition is opportune as most oil companies are in good financial health and
refiners are focused on the financial benefits of optimizing their supply
chains. This acquisition is a logical move to build on our strong customer
franchise, which includes 23 of the top 25 petroleum companies worldwide, and
broaden our supply chain solution, which is already the most comprehensive
solution available for the process industries."
"The Internet is driving our customers to deploy e-business solutions that
integrate refining operations across the entire crude oil value chain," said
David Gamboa, CEO of Petrolsoft. "AspenTech and Petrolsoft have demonstrated
their technological leadership in this market and we believe there is a
tremendous opportunity in working together. Our single, integrated offering will
combine best-in-class software technology, unmatched domain expertise and
unparalleled implementation capabilities to create an innovative solution that
no other vendor is able to provide to the oil and gas industry."
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About Petrolsoft Inc.
Headquartered in San Diego, California, Petrolsoft Corp. is a leading provider
of unified supply chain management systems and eBusiness and eCommerce solutions
for the downstream petroleum industry. Founded in 1989 at Stanford University,
Petrolsoft focuses on the supply and distribution of bulk refined fuel products
including motor gasoline, distillates, kerosene and jet fuel to both retail and
wholesale markets. Organizations that have benefited from Petrolsoft's solutions
include integrated oil companies, petroleum product refiners, petroleum product
marketers and petroleum product carriers. Current customers include Arco
Products Co., BP Amoco p.l.c., Caltex (Australia), Chevron Canada Ltd.,
ExxonMobil, Marathon Ashland Petroleum LLC, Sun Refining and Marketing USA.,
Sunoco Inc. (Canada), Tosco Marketing Company, Ultrmar Diamond Shamrock and
Repsol-YPF S.A. For more information on Petrolsoft and its technology visit
http://www.petrolsoft.com.
About AspenTech
Aspen Technology, Inc. is the leading supplier of integrated software and
solutions that enable process manufacturers to automate and optimize their
plants and extended supply chains, while enabling e-business. With deep process
knowledge, best-in-class technology, and strategic alliances with leading
business and technology partners, AspenTech offers the industry's broadest
family of scaleable solutions, allowing process manufacturers to achieve
competitive advantage in the Internet economy. AspenTech's Plantelligence(TM)
solutions automate and optimize critical business processes at the plant level.
AspenTech's Enterprise Optimization solutions extend the scope of optimization
across the enterprise and extended supply chain. AspenTech eSupply Chain
solutions enable manufacturers to link seamlessly to customers, suppliers and
on-line trading exchanges, creating a collaborative, flexible extended
enterprise. AspenTech employs more than 1,500 people worldwide. For more
information, visit http://www.aspentech.com.
The matters discussed in the first, second, fourth and fifth paragraphs of this
news release include forward-looking statements that may involve a number of
risks and uncertainties. Actual results may vary significantly based on a number
of factors, including (1) potential risks in integrating the operations of the
newly acquired Petrolsoft, (2) the relatively long sales cycles for supply chain
solutions, (3) potential downturns in the worldwide economic market that could
adversely affect petroleum companies and companies in other process
manufacturing industries and (4) changes in the rapidly developing market for
eBusiness solutions for process manufacturers.
AspenTech, Aspen eSupply Chain Suite, Aspen PIMS, Enterprise Optimization and
the aspen leaf logo are trademarks of Aspen Technology, Inc., Cambridge, Mass.
