Vertical market and departmental application software companies sell software applications to narrowly defined or niche segments of a market. In other words, vendors in this space, develop software which is usually consumed by a specific industry. Niche solutions come in many flavors and serve a multitude of industries, both large and small. The application could be an enterprise level application sold to a small, medium or large sized business or an application critical to the operations of a single department of an enterprise.
There is a wide variety of vertical subsectors, we cover in greater detail some of the largest:
Energy & Environment
Geoservices Acquires Petrospec Technologies
Petrospec is a domain expert and successful innovator of the highly specialized technologies that improve the science of analyzing rock properties for the petroleum drilling industry. The company maintains special expertise in seismic and real-time pore pressure and rock property analysis. The Geoservices Group is a leader in oilfield services worldwide.
The technology used for oil finding is both demanding and undergoing constant improvement. However it still took awhile for the market and the competition to fully embrace the type of methods that Petrospec pioneers. Over time, Petrospec’s domain expertise moved from being an important early differentiator to a competitive must have for the global drilling services companies. This acquisition was made against the backdrop of a dramatic downturn in global economy and the roller coaster movement of the price of a barrel of petroleum from $150 BBL to $40 BBL.
Annoucment Date: July 10, 2009
Deal Value: Undisclosed
Corum Group Leads Sale of Wenco shares to Hitachi
Corum Group Ltd. today announced the acquisition of shares in its client, Wenco International Mining Systems, Ltd. (“Wenco"), by Hitachi Construction Machinery Co., Ltd. (Tokyo Stock Exchange, First Section)(“HCM"). HCM acquired a significant interest in Wenco in a strategic transaction as part of the expansion of its mining business, particularly in resource rich regions of the world.
“Wenco is a leading global vendor of mine management solutions; their software business fits extremely well with Hitachi’s mining equipment product line,” said Mark Reed, executive vice president of Corum Group. “The transaction further expands HCM’s solutions for the mining industry and also will provide new relationships and resources to increase Wenco’s ability to serve the mining industry. Working together, Wenco and Hitachi will be able to add even more efficiencies to the “pit to port” value chain with a view toward increasing mine productivity and reducing costs per ton.”
Announcement Date: July 7, 2009
Deal Value: Undisclosed