Intelex Buys Ecocion: Gets Oil & Gas Specific Functionality as Well as Its First Significant US Office
On Wednesday 29 June, Intelex announced its acquisition of environmental software provider Ecocion. Denver-headquartered Ecocion has over 40 customers, entirely in the oil and gas sector including Anadarko, Chaparral Energy, Chesapeake Energy, Devon Energy, Discovery Natural Resources, Encana, EOG Resources, Jonah Energy and Kinder Morgan. In addition to the oil and gas customer base, the acquisition gives Toronto-headquartered Intelex its first significant office in the US and pushes its employee numbers above 400 for the first time as it brings on board approximately 60 Ecocion employees. Financial terms of the deal were not disclosed.
Based on over 15 years of experience working with customers in the oil and gas industry, Ecocion has developed its Asset & Compliance Tracking System (ACTS) software application to cover asset management, compliance, incidents, air emissions, operations and reporting. Oil and gas specific content and complex calculations are embedded in the application which is supported by an implementation team with petrochemical engineering expertise. Despite its small size, Ecocion has competed successfully through its laser focus on oil and gas industry requirements. Functionality focused on assets, equipment, inspections, vehicle operations, and chemical inventories helps Ecocion differentiate from software vendors selling to multiple industries.
Intelex emerged from the 2016 Verdantix EH&S software Green Quadrant benchmark with the highest overall product capability score but the product was not the strongest on environmental management. Acquiring Ecocion, will enhance Intelex’s existing capabilities around air emissions, GHG and water. Intelex also gets interesting new functionality for process safety management (PSM), spill prevention control, and counter measures (SPCC) and asset management. Intelex has committed to fully integrating the Ecocion product into the Intelex platform to ensure customers do not need to grapple with two separate user interfaces and databases. This process will be completed by early 2017.
Buying Ecocion is a sensible decision by Intelex which received a strategic investment from JMI Equity and HarbourVest back in 2015. The purchase of Ecocion was not however funded with the cash from that 2015 strategic investment. The purchase of Ecocion by Intelex reflects the ongoing race to build critical mass in the EH&S, risk management, quality management, and product stewardship software markets. In the same week Mitratech acquired CMO Software and Enviance, backed by Battery Ventures, bought Actio.