BlueCielo Acquires Majority Stake in Finnish Software Company Kronodoc Oy

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Acquisition of Kronodoc Oy represents a strategic move to expand BlueCielo's proposition to the Engineering, Procurement and Construction market

BlueCielo ECM Solutions, a leading global supplier of software solutions for Engineering Content Management (ECM) and Asset Information Management (AIM), announced today it has acquired a 70 percent stake in Kronodoc Oy, a Finnish company specializing in document management software solutions for the Engineering, Procurement and Construction (EPC) sector, from funds managed by Pohjola Captal Partners and Canelco Capital, ABB, Shawfield Overseas SA and Novitra Investment Oy. The remaining 30 percent of the company has been acquired by Kronodoc's management.

Based in Espoo, Finland, Kronodoc has developed highly sophisticated software solutions to control the immense volume of documents that are exchanged among various parties that work together in large or complex engineering and construction projects. Kronodoc's solutions contribute to the significant reduction of project quality cost and communication costs in the supplier network during the engineering, manufacturing and construction processes. Kronodoc has its roots in CERN, the European Organization for Nuclear Research in Geneva, Switzerland, that runs one of the largest engineering projects in the world. Today, Kronodoc's solutions are used to support some of the world's largest industrial projects.

"This strategic acquisition accelerates BlueCielo's focus on adding value to the Engineering, Procurement and Construction market," said Martijn Janmaat who has been responsible for the acquisition in his role as president of BlueCielo ECM Solutions.

BlueCielo's strategy is to add value through the supply of user functionality that supports the requirements of owner/operators and engineering/contracting companies to manage and control asset- and engineering-related documents. BlueCielo's main focus market is the capital-intensive process industry, including Oil & Gas, Chemical, Pharmaceutical, Mining & Metals, Utilities, as well as the EPC industry. BlueCielo's customer base includes the majority of the world's industry leaders such as ExxonMobil, Shell, Total, BASF, Huntsman, Bayer, Johnson & Johnson, Pfizer, BHP Billiton, Gerdau, American Electric Power, Entergy, RWE, Flowserve, Bluewater, BAM, Arcadis and many others.

Most of these companies use the BlueCielo Meridian Enterprise or BlueCielo ImandrA solution to supplement more general document management systems and to integrate engineering-specific document management with maintenance systems and other business process systems. The independence of BlueCielo from mainstream applications and its focus on engineering documents and asset information allows for optimal integration while maintaining maximum freedom of choice for the customer.

The acquisition of Kronodoc complements the offering of BlueCielo's management systems with solutions for specific document control in large engineering and construction projects. These are typical projects in BlueCielo's focus markets.

BlueCielo's global market presence will reinforce the international rollout of Kronodoc products which until now, for strategic reasons of the previous owners, were mainly marketed in Finland. Kronodoc's customers include ABB, Botnia, Neste Oil and Wartsila.

"With the addition of Kronodoc we are increasing the value we add to our markets, while obtaining meaningful synergy as well," said BlueCielo's CEO Luuth van der Scheer.

Rainer Puittinen, one of the founders of Kronodoc, will continue as the company's managing director. "At Kronodoc we have had the tremendous opportunity to work with some of the largest projects that have ever been undertaken by mankind," said Puittinen. "The supplier networks of global multibillion dollar megaprojects such as the biggest cruise liners or nuclear power plants comprise hundreds of suppliers on all continents and thousands of global users who collaborate on hundreds of thousands of documents to create those huge devices and installations. In such projects, document flows drive all activities, be it engineering, purchasing or construction. With Kronodoc document control, document flows are timely and efficient which ensures that lead-times and errors are minimized, leading to faster delivery at lower quality cost. Documents drive big projects and Kronodoc controls those documents."

Puittinen continued, "Although our customers and users have been global since day one, our strategy has been to be a local supplier operating close to our customers. We are truly excited about the new ownership structure since our market focuses are totally aligned and our offerings complement each other on customer value chains perfectly. BlueCielo has the global presence and organization to truly make Kronodoc a global player and catalyze our international growth."

Leading industry analyst Bob Mick, vice president of emerging technologies at ARC Advisory Group, commented, "BlueCielo's announcement of the acquisition of Kronodoc is a strategic move to address the business challenges of the EPC market. EPCs are in need of project and plant information management solutions which support document management in widely networked engineering projects. Kronodoc's solutions target the needs of several companies working together on large scale engineering projects, which require significant volumes of (technical) documentation to be exchanged between the collaborating parties - owner/operators, contractors, subcontractors and suppliers. With this acquisition, BlueCielo significantly strengthens its position to support extremely complex projects such as the building of factories, power plants, ships and other industrial projects which require a large amount of documentation."

Kronodoc has 23 experienced and qualified staff who will remain based in Espoo. Van der Scheer and Janmaat will both join the board of Kronodoc.

About Kronodoc Oy
Kronodoc Oy is a Finnish supplier of fully web-based project document control solutions for owners and operators, turn-key systems suppliers, engineering consultancies and contractors and their supplier networks. Kronodoc has over 15 years of experience in supporting information flows in complex supplier networks. Kronodoc solutions are packaged in Express (SaaS), Hosted or Enterprise editions to match customers' IT strategy and need and to minimize start-up cost and TCO. Kronodoc solutions are used by over 40,000 users on all continents in some of the largest industrial projects in the world to control project document flows that drive the projects. Kronodoc Oy offices are in Espoo, Finland. For more information please visit http://www.kronodoc.com or contact Rainer Puittinen at +358 40 525 2884.

About BlueCielo ECM Solutions
BlueCielo ECM Solutions provides integrated Engineering Content Management (ECM) and Asset Information Management (AIM) solutions for the capital-intensive process industry, including Oil & Gas, Chemical, Pharmaceutical, Mining & Metals, Utilities as well as the Engineering, Procurement and Construction industry. BlueCielo has more than 25 years of industry experience with above 250,000 users in over 50 countries worldwide. The company has offices in Brazil, Germany, the Netherlands, Russia, UK and USA, together with an extensive global network of established partners. BlueCielo ensures a high level of service and support on a truly worldwide scale for its leading software solutions BlueCielo Meridian Enterprise, BlueCielo ImandrA and BlueCielo TeamWork. For more information, please visit http://www.bluecieloecm.com, or call (800) 531 2287 (toll-free from the USA), +1 610 524 1311 (Americas) or +31 (0)70 413 3700 (EMEA).

BlueCielo and InnoCielo are registered trademarks of BlueCielo ECM Solutions. All other brand names, product names, or trademarks belong to their respective holders. © 2010 BlueCielo ECM Solutions. All rights reserved.

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