Enviance Expands into Product Stewardship and Chemicals Management with Purchase of Actio
EH&S software provider Enviance, headquartered in Carlsbad, California, has purchased Actio Software Corporation a product stewardship solutions vendor based in Portsmouth, New Hampshire. Founded in 1996, and now with more than 60 employees, Actio offers cloud-based solutions for safety data sheet management, compliance with GHS, REACH and RoHS, chemical management, conflict minerals, and supply chain stewardship. Actio’s key competitors in the product stewardship market are firms such as 3E Company, Sitehawk, and VelocityEHS. Enviance was able to fund the purchase of Actio as it is owned by the large private equity firm Battery Ventures.
Verdantix spoke with Enviance CEO, David Muse to understand the strategy behind buying Actio as opposed to similar sized vendors in other market segments. We heard that Enviance remains 100% focused on the EH&S market opportunity and is not seeking to positon itself in risk, quality or asset performance management – a strategy other vendors have adopted. The expectation is that by integrating the chemicals management capabilities of Actio into the cloud-based Enviance platform they will provide a stronger capability to manage EH&S processes and also reduce integration and implementation costs. Through the acquisition Enviance gains 200 net new customers which will provide plenty of scope to test out this value proposition.
The logic of the acquisition is similar to deals struck by IHS, SAP and VelocityEHS which through acquisition own an EH&S workflow app as well as a safety data sheet and broader product stewardship solution. For Enviance to get full leverage from its acquisition it will need to comprehensively demonstrate how the integrated Actio/Enviance suite is better for users than partner-based models like the Enablon/3E Company tie up. Now with approximately 100 employees and more than 500 customers Enviance looks like a more realistic contender to break into the top 5 EH&S software vendors.