EH&S Software M&A Will Continue In Response To Customer Demand For Integrated Platforms
In 2016 there were a total of twelve publicized transactions in the EH&S software market. For many in the market, it seemed like more. Approximately $650 million was spent on EH&S software firms and an additional $1 billion went into the buyout of SAI Global. UL expanded into environment and sustainability software, Health & Safety Institute bought into chemicals management with Safetec, Mitratech pushed into safety with CMO Software, Enviance picked up Actio in product stewardship, Intelex beefed up its environmental functionality by buying Ecocion as did VelocityEHS with the purchase of E3 Solutions.
We predict that deal flow will continue throughout 2017. This will be partly driven by the need for North American vendors to establish a presence in the European market. The biggest driver will be meeting customer demand for platforms which cover all EH&S workflows. The Verdantix survey of 301 EH&S managers found that 81% consider the breadth of applications is either “very important” or “important” when they are making a purchase decision. The acquisitions of regAction and IQS by Medgate already shows the appetite in 2017 for private equity-backed vendors to provide the broadest possible range of functionality. Unless one of the top five independent vendors is sold by its PE owners, eclipsing the $650 million number from 2016 will be tough.
An infographic by the team at Verdantix EH&S Tech