Medgate Continues Aggressive Growth Strategy With Purchase Of IQS For Quality Management
Following the acquisition of regAction to strengthen its environmental management functionality, Medgate has now bought 25-employee IQS. Founded in 1988 and based in Cleveland, IQS is a quality management software provider with more than 150 customers in the aerospace and defence, automotive, manufacturing and medical device sectors. Medgate made the acquisition because the IQS focus on enterprise accounts is aligned with the Medgate commercial strategy, there was a low level of overlap in the two customer bases and Medgate has seen an uptick in RFPs requesting both EH&S and quality management functionality in the same platform. Medgate will also be boosted by the deep QMS expertise of IQS President and CEO Michael Rapaport and his team. Financial terms of the deal were not disclosed.
IQS currently provides core quality management software applications for processes such as change management, CA/PA, customer complaint handling, Failure Mode and Effects Analysis (FMEA), gauge calibrations and Production Part Approval Process (PPAP). IQS is a browser-based enterprise application and the vendor offers the software as an externally hosted offering as well as providing customers with the option of on premise deployment. This makes sense as a recent Verdantix survey of 301 EH&S decision-makers found that on premise and single instance hosted are the most preferred deployment options. Customers include AkzoNobel, Boeing, Clorox, Curtiss-Wright, Delta, Dril-Quip, Eaton, Mack, Nexteer, Sealy, Stanley, Tsubaki and Worthington Industries.
Given a strategy development and acquisition process typically takes at least six months, Medgate President and CEO Mark Wallace has been quick out of the blocks to improve the breadth of its EH&S platform following the strategic investment by a consortium led by Norwest Partners in March 2016. By buying regAction and IQS, Medgate can no longer be positioned as a vendor primarily focused on industrial hygiene and occupational health, as it now offers credible enterprise-class functionality for environment and quality management. To fully exploit the value of the investment in the acquisitions, Medgate will need to migrate all the environment and quality apps onto the same code base as the existing Medgate platform. Otherwise it will struggle to compete with integrated vendors such as EtQ and Intelex. The IQS deal means that Medgate now competes directly with QMS vendors like IQMS, MasterControl, Pilgrim Quality Solutions and Veeva.
For more insight into the evolution of the EH&S technology market attend the Verdantix Summit at the JW Marriott in Houston from May 15-17.