Alcumus Goes Canadian, Mobile and Multi-Tenant With Majority Investment In eCompliance
On Friday August 2, 2019 UK-headquartered Alcumus acquired a majority share in Toronto-based cloud safety software provider eCompliance for a disclosed fee of £25 million (CAD$40 million, USD$30 million). The funding for the transaction came from private equity firm Inflexion which holds a majority stake in Alcumus following a buyout for £92 million in October 2015. eCompliance has been on a rapid organic growth trajectory in the last four years and in April 2017 boosted total revenues through its purchase of Field iD a mobile equipment inspection product.
eCompliance CEO, Adrian Bartha – who is now President, North America for Alcumus – turned an eLearning business which was founded in 2007, into a mobile-first, multi-tenant software vendor focused on safety management. Whilst the majority of its competitors built out broad EHS software platforms, eCompliance focused on engaging frontline workers with mobile apps for safety inspections, EHS audits, incident reporting, training tracking and hazard identification. The eCompliance application has virtually no environmental management functionality. In addition to the relentless drive to achieve ease of use for workers, one of the vendor’s major differentiators has been its focus on customer success and rapid time to value.
Buying eCompliance is a smart move by the Alcumus management team. With a strategy to digitize its EHS service offerings, overhaul its own software portfolio and expand into North America, eCompliance ticks all the boxes for a good strategic fit. What’s more, the eCompliance product is built from the rack upwards on Microsoft technology, the dev team have a mobile-first mindset and the multi-tenant architecture enables faster and cheaper innovation than private cloud and on premise. This product architecture will enable Alcumus to develop a broader EHS software platform, leveraging its broad range of subject matter experts, which it can sell to new customers and also offer to existing users of the Info Exchange product. The alternative of starting from scratch was certainly less realistic in such a competitive and fast-moving market.
As with other recent deals in the EHS market, this acquisition further ramps up competitive intensity on both sides of the Atlantic. Alcumus now has a North American office to leverage for sales of its audit and consulting services across workplace hazards such as air quality, hand and arm vibration monitoring, noise monitoring and fire safety. Also on the list to launch in North America via the eCompliance business will be the rapidly-growing SafeContractor solution. In the UK, Alcumus will likely fire up its sales team to sell the eCompliance software which will compete directly with offerings from vendors like Airsweb, Ideagen, Intelex and SHE Software.
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