Flotek Industries acquires data and analytics company JP3 Measurement

US-based Flotek Industries has acquired JP3 Measurement, a data and analytics technology company based in Texas, in a cash-and-stock deal worth around $34.4 million.

The real-time data platforms of JP3 Measurement are said to combine the energy industry’s inline optical analyzer with cloud visualization and analytics, to drastically boost processing efficiencies and valuation of natural gas, crude oil, and refined fuels.

Established in 2005, JP3 Measurement is engaged in enhancing the quality of hydrocarbon measurement and process control for the oil and gas industry by leveraging analysis points in all the major basins across North America.

Matt Thomas – JP3 Measurement President said: “Our outstanding team at JP3 has built a technology platform that brings significant increases in profitability to over sixty clients by maximizing the value of their hydrocarbons through our real-time analysis of flowing products and our cloud-based monitoring solutions.

“Flotek’s strong liquidity position can fuel growth opportunities by accelerating our Data-as-a-Service (DaaS) product offerings and expanding our reach into international markets. The energy industry is in a state of transformation, and we look forward to helping companies capture cost savings and generate higher revenues through the application of our proprietary technology.”

Flotek Industries said that the deal positions it for fast-tracked growth and diversifies its business across all segments of the hydrocarbon value chain, while improving existing chemistry applications and widening its customer reach across the midstream and downstream sectors.

John W. Gibson, Jr. – Chairman, President, and CEO of Flotek Industries said: “This market has created such chaos and uncertainty that numerous growth opportunities – both organic and inorganic – have emerged. We have been disciplined in vetting those opportunities with a desire to reduce our dependence on rig count and the US unconventional market, while establishing an offering in the digital transformation market.

“With the acquisition of JP3, we are able to diversify our revenue stream and better serve our customers amidst accelerating digital transformation in the energy industry. The estimated $1 billion addressable market in the US alone provides significant revenue growth opportunities.”