AspenTech acquires Fidelis for asset optimization
You may remember that Aspen Technology was rebuffed earlier this year when it tried to acquire KBC and its refinery optimization expertise. Well, that didn’t slow them down much: Today, AspenTech announced that it has acquired FidelisGroup, maker of Titan 2, FAST 3 and other solutions that are generally classed as asset reliability software. These solutions are used by manufacturers to predict and optimize asset performance. The end goal is to identify areas of risk, like potential equipment failures, and develop plans to ensure that the failure doesn’t happen, improving uptime and lowering costs.
Titan 2 is a multi-state discrete-event simulation tool for system and reliability modeling. Titan 2 lets user model a production process, then interrogate it to optimize the design and remove bottlenecks. AspenTech says engineering and construction contractors also use Titan 2 to evaluate whether process reliability and availability will meet their design guarantees; that’s smart — if they don’t, EPCs are can be subject to profit-killing penalties.
FidelisGroup also offers other products, though only WST is specifically called out in the acquisition announcement. WST stands for Warehouse spare part Sufficiency Tool, and is used for spare parts management. This is a big area that represents huge sunk costs for most operators in the oil and gas industry. If they can optimizes parts stocking and create strategies to lower inventory carrying costs while still maintaining adequate availability, they stand to see huge savings.
The company lists an impressive roster of customers in refining, oil and gas production, chemical and petrochemical processing and related industries — many (all?) of whom are already AspenTech customers. This clearly wasn’t about buying new accounts, but about stretching AspenTech’s offering further into asset operations.
Terms of the transaction were not disclosed but I have a feeling FidelisGroup wasn’t huge.