Though there doesn’t seem to be a formal press release issued to the wires, the two companies announced via website postings a couple of weeks ago that MCG has acquired Paragon Energy Software. In the joint posting, the companies note, “MCG Energy Solutions is a 22-year old software company headquartered in Minneapolis, MN. MCG specializes in operating and financial systems for the wholesale power and gas industries. We are excited about the addition of Paragon’s Credit and Energy Trading and Risk Management (ETRM) software to MCG’s portfolio of existing products. The acquisition of Paragon reinforces MCG’s position as a growing leader in the energy software industry throughout North America. By integrating Paragon’s ETRM and Credit solutions with MCG’s product portfolio, MCG will enable customers to leverage new credit and risk management functionality within their existing MCG operating systems.”
I’ll be meeting with the Paragon team later this week to learn any additional insights; however, on the surface it certainly appears that by adding Paragon’s leading energy credit risk solution, a solid customer list and a growing capability in ETRM/CTRM, this deal should position MCG well against their crosstown rival OATI, and the other solution vendors vying for a piece of the gas and power utilities and transmission markets.