Medgate’s regAction Acquisition Demonstrates Its Commitment To Building An Integrated EH&S Platform
On February 15, 2017, Medgate, the Toronto-headquartered EH&S software provider, announced its acquisition of privately held environmental management software vendor regAction. The news comes nearly a year after Medgate received a strategic investment from BMO Financial Group, Georgian Partners and the growth equity team at Norwest Venture Partners. The approximately 40 employees at regAction will be retained by Medgate and regAction CEO Frank Ivoska will report to Medgate CEO Mark Wallace. The financial terms of the deal were not disclosed.
Headquartered in Houston, regAction was founded in 1997 by current CEO Frank Ivoska as a spinoff from ICF Kaiser Engineering. For the last twenty years the firm has focused on solving environmental management challenges with SaaS solutions for air emissions inventories, continuous emissions monitoring, GHG emissions calculations, refrigerant gases management, State of Texas Air Reporting, toxic chemical release reporting, water discharge monitoring and waste management.
Given Medgate’s heritage in industrial hygiene and occupational health, the most valuable technology assets owned by regAction were the air calculation and GHG emissions management applications which typically take years to develop in line with the requirements of enterprise customers. Along with a Houston office and some solid environmental technology expertise, Medgate also gets access to customers in the chemicals, manufacturing, mining and oil and gas sectors such as Brock Group, NextEra, Stolthaven, TGS and Vopak.
Buying an environmental management focused vendor was a logical decision for Medgate considering its existing strengths in occupational health and safety management. Whilst there are several independent environmental management software vendors such as Dakota Software, Emisoft and ERA Environmental, the acquisition of Ecocion by Intelex in June 2016 indicated the risk of being late to the party. Assuming Medgate moves rapidly to integrate the regAction applications into the Medgate suite and sunsets the old technology by mid-2018, this acquisition will eliminate a major source of competitive disadvantage for Medgate relative to other vendors in the Leaders’ Quadrant of the Verdantix Green Quadrant. The deal confirms the well-established trend towards integrated EH&S platforms.
For more information about this strategic acquisition by Medgate and to learn how it will impact the EH&S software market, see the Verdantix report ‘Medgate Bolsters Environmental Capabilities With regAction Acquisition’.