SAI Global Buy Out Significantly Strengthens It’s EH&S And Integrated Risk Growth Potential
Compliance, risk management and standards development provider SAI Global announced in September 2016 that it had agreed to be acquired by Baring Private Equity Asia, an alternative asset manager with total capital of more than $10 billion. The investor typically has a five to seven year investment horizon which implies a patient approach to building value at SAI Global. The $1 billion deal closed in December 2016 which opened a new chapter for Australia-headquartered SAI Global in 2017.
Looking back in time, SAI Global’s acquisitions of Cintellate, an occupational health and safety software vendor in October 2009 and then Compliance 360, a risk management software firm, in February 2012 did not create a splash in the North America-dominated EH&S and risk software market. A slew of further acquisitions by SAI Global, many in the food safety sector, meant that organizational change was a constant for the business. We now see three reasons why more rapid growth should be expected.
Firstly, primed with fresh investment capital, Verdantix believes the EH&S and integrated risk management solutions will be on a strong growth trajectory. In 2017, customers will want to see an innovative technology roadmap which covers user interface upgrades, mobile apps for edge users and low cost integration across the SAI Global risk management apps portfolio.
Secondly, the Cintellate EH&S software business has the advantage of sitting in a business with a broad footprint of service offerings for EH&S management systems implementation, standards development and training programmes. Similar to the cr360 software assets at UL EHS & Sustainability, this provides SAI Global with credibility with EH&S experts, a broad geographic presence and cross-selling support for the software business. Cintellate, Compliance 360 and Modulo, the IT risk management application are all set to get a boost in funding which will drive innovation and growth.
Thirdly, SAI Global is also in a strong position to benefit from the international expansion of the EH&S software market given its geographic presence. Whilst most of the EH&S software vendors have 80% or more of their employees located in North America and large European economies, SAI Global has a significant office footprint in Asia Pacific, Eastern Europe and the Middle East. This provides the firm with low risk, low cost access to green field markets with high growth rates and emerging EH&S requirements.