Hexagon’s Acquisition Of j5 International Adds To The ORM Software Buying Frenzy
Hexagon PPM, a division of 18,000 employee Sweden-headquartered Hexagon, announced on January 17th that it had acquired UK-headquartered J5 International the operational risk management (ORM) software vendor. Terms of the deal were not disclosed. Based on the size of the j5 International business which was operated by between 40 and 50 employees, and standard valuation metrics, Verdantix estimates the valuation was between £11 million and £15 million. The firm was founded in 1998 and serves customers in power generation, petrochemicals, mining, chemicals and utilities sectors through its extensive network of partners such as Accenture, CGI Group, DNR Process Solutions, MDE Network, OVSys and Shikombiso.
j5 International, is one of the few specialist operational risk management software vendors and features in the forthcoming Verdantix Green Quadrant benchmark along with other EHS and ORM vendors such as Cority, eVision, Gensuite, Petrotechnics, RAP International, Riskpoynt and Tenforce VisiumKMS. The Verdantix ORM benchmark found that j5 International has strengths in shift management and permit to work functionality. In the ORM software benchmark j5 International scored a robust 1.8/3.0 and 1.7/3.0 for its shift management and permit to work modules respectively, against an average of 0.8/3.0 for shift management and 1.4/3.0 for permit to work. The vendor also has solid capabilities for mechanical integrity and management of change. It is not, however, scored as a leader in the independent market assessment conducted by Verdantix.
Following on the tails of the Wolters Kluwer acquisition of eVision in October 2018 and the Sphera acquisition of Petrotechnics in January 2019, the purchase of j5 International flags the buying frenzy taking place in the specialist ORM software market. The functionality provided by specialist ORM software straddles the divide between the asset reliability, inspection and maintenance focus of APM vendors, and the process safety management, incident management and worker risk assessment functionality of EHS vendors. This makes the specialist ORM vendors – all of which have fewer than 50 employees – hot property as APM vendors like Hexagon and EHS vendors like Sphera battle to acquire them. With a shrinking pool of high quality ORM vendors to buy, their larger brethren need to make a move in the first half of 2019 to accelerate their industrial risk management commercial strategies.
For more information on this exciting market development and insight into the capabilities of all ORM vendors apply to attend the forthcoming Verdantix webinar: “Operational Risk Management Software: Solutions To Control Industrial Risks” on February 28th.