€22 Million Investment Boosts Ecointense’s European Expansion
Ecointense, an EHS software vendor headquartered in Germany, announced on May 22nd that it had raised €22 million from European private equity firm One Peak Partners and investment funds managed by Morgan Stanley Expansion Capital. Business Angels Fondsgesellschaft and Wecken & Cie, German and Swiss-based investors respectively, have sold their shares in Ecointense to the new investors. Founded in 2007, Ecointense has 90 employees with offices across three German states: Berlin, Bavaria and Lower Saxony, as well as in Austria and the US. The EHS software market is predicted to grow at an 11% CAGR, from $930 million in 2016 to $1.41 billion in 2020 and the investment is intended to support Ecointense’s expansion plans in Europe.
Over the past decade, Ecointense has developed an EHS software application called EcoWebDesk. This is an integrated platform that combines the modules of audit management, hazardous materials, legal compliance, occupational health, safety and environmental materiality assessment. The mobile app is a prominent part of the Ecointense technology offering and is used by workers for reporting personal injuries and near miss incidents. Ecointense’s client base spans more than 100 firms, largely covering medium-sized firms in the metal, pharmaceutical and logistics industries, such as Gardena Manufacturing, Luye Pharma, Pure Green and Zufall, but also selling to large-sized international firms such as Scholz, Siemens, Unilever and Veolia. One of the common uses of EcoWebDesk is its enterprise-level functionality for ISO 9001, ISO 14001 and OSHAS 18001 management systems.
We anticipate that investment will continue in EHS software vendors and the broader EHStech category which includes mobile apps, digital safety vests, vehicle telematics and virtual reality training. Private equity investments in the last 2 years and acquisitions of EHS software vendors by large corporates such as UL and Wolters Kluwer will ramp up pressure on private-held software vendors. Ecointense has accepted this logic and is now positioned to establish a very strong market position in German-speaking European markets and expand into contiguous countries.