UL EHS Sustainability Snaps up cr360 to Jump into the EH&S Software Market
UL EHS Sustainability, the UL division focused on environment, health and safety has acquired cr360, the EH&S software vendor. Headquarted in Cambridge, UK, cr360 has 140 employees and annual revenue in the $10 million to $20 million bracket. Applying standard valuation metrics, this implies an acquisition price between $20 million and $35 million.
The combined businesses will have an almost 400-strong workforce dedicated to EH&S, in addition to scores of other UL employees involved in delivering EH&S related solutions unrelated to software. Verdantix’s benchmark of the leading 22 EH&S software providers found cr360 has a well-designed application with high scores for user interface, business intelligence, configurability, GHG emissions and sustainability management. The deal presents the opportunity to cross-sell cr360’s solution to UL’s existing base of 1,800 customers.
The deal makes strategic sense for both firms. cr360’s environment and sustainability expertise will be boosted by incorporating detailed health and safety templates, workflow and content from UL. The combined vendor now has the resources and critical mass to expand its market share and become a contender for a top three position in the EH&S information management market.
The cr360 acquisition is just the latest in a flurry of deals as the EH&S software market moves towards consolidation. With the CAD$160 million investment into Intelex, rapid growth of Enablon and impending sale of IHS, the race to the top is hotting up. The pressure is mounting for those PE/VC firms still looking to invest in the market as well of CEOs of rival vendors seeking to grow via acquisition.