Sphera Acquires Sitehawk To Create A Multi-Industry Product Stewardship Powerhouse
On Monday May 6th 2019, Sphera announced the acquisition of Nashville-headquartered SiteHawk, a vendor of product stewardship software, safety data sheet authoring tools, chemicals content and chemicals inventory services. This acquisition demonstrates the Sphera commitment to become the market leader for enterprise-class product stewardship and the vendor’s focus on growth in cloud software. This is the first deal Sphera have concluded to expand their footprint in the chemicals and product compliance segment following on the acquisitions of Rivo Software, SparesFinder and Petrotechnics. Terms of the deal were not disclosed. Based on standard valuation metrics and recent comparables, Verdantix estimates that SiteHawk was valued at between $26 million and $38 million.
Founded in 1993, SiteHawk has established a steadily growing business of more than 80 employees serving 600-plus customers in 48 countries. SiteHawk’s solutions include centralizing all Safety Data Sheet (SDS) management activities to deliver site-level visibility, streamlining customer information requests, automating SDS label printing, conducting on-site chemical inventory reconciliations, and providing configurable material approval workflows. The vendor’s customer base covers a variety of industries such as automotive, chemicals, manufacturing, oil and gas, retailers, food and beverage, and utilities. Example customers include Bosch, Cabot, Nestlé and Nissan.
This deal delivers three big wins for Sphera. Firstly, the acquisition of SiteHawk strengthens Sphera’s strategy to deliver cloud-based product stewardship applications. Secondly, SiteHawk has designed its product stewardship offerings for manufacturers like Nissan who transport, store and use chemicals. Their product stewardship needs are significantly different from the chemicals manufacturers such as BASF and BP for whom Sphera has developed their solutions. The Verdantix report “Market Overview: Product Compliance” refers to the former as “Operations Defenders” and the latter as “Product Guardians”. Sphera can now sell the SiteHawk offerings into a new market segment. Thirdly, with the recent sale of regulatory assets by SAP to Verisk 3E, there is now a two-horse race to dominate the enterprise product stewardship market in terms of market share and product breadth. This is good news for both vendors in a market where content automation has been putting pressure on margins. The global product compliance market is set to exceed $1 billion by 2019.
To learn more about the evolving capabilities offered by EHS software vendors, apply to attend our Verdantix webinar ‘What The 2019 Green Quadrant For EHS Software Means For Software Buyers And Vendors,’ taking place on Thursday, May 9 at 4:00pm BST / 11:00am EDT.