Yokogawa’s Acquisition Of RAP International Flags Up Faster APM And ORM Software Convergence
Yokogawa Electric, the Japanese industrial solutions firm with revenues of JPY 407 billion ($3.7bn) and 19,000 employees announced on September 5th that it had acquired UK-headquartered RAP International, a specialist provider of control of work software. Terms of the deal were not disclosed. Based on the size of the RAP International business which had between 20 and 25 employees and standard financial metrics, Verdantix estimates RAP was acquired for between £4 million and £7 million. RAP was founded in 1994 and its flagship control of work software product – which forms part of the Operational Risk Management (ORM) software category – has been implemented for 10,000 users in more than 150 locations across 30 countries.
RAP International featured in the Verdantix Green Quadrant Operational Risk Management Software benchmark and was one of the top three vendors for control of work software which includes functionality for undertaking risk assessments, putting relevant isolations in place, creating necessary permits for safely carrying out tasks and ensuring safe and efficient planned plant shutdowns. It tied top in the benchmark for job hazard analysis with a score of 2.4/3.0 and garnered an impressive score of 2.5/3.0 for its permit to work software. Publicly disclosed RAP customers include Benegas, Huntsman, Ineos, PetroChina, Qatar Petroleum, Sabic and Vitogaz.
The past 12 months have been marked by an acquisition spree in the ORM software market, with EHS and APM vendors battling to acquire specialist ORM software vendors. Wolters Kluwer acquired eVision in October 2018, Sphera acquired Petrotechnics in January 2019 and Hexagon acquired j5 International in January 2019. The main driver for these acquisitions is the increasing need to control and mitigate industrial risks in real-time. In the recent Verdantix survey, 96% of 284 operational excellence decision-makers believe that an integrated software platform for safety, risk and asset integrity management, would improve their firm’s operational excellence performance.
Combining information on worker safety with asset health provides executives at industrial firms a 360-degree view of risks occurring in real-time. Verdantix believes that this is just the beginning and availability of new digital technologies for real-time risk management will add fuel to the ORM software vendor acquisition fire as EHS and APM vendors compete to expand their product offerings. We predict that the small number of existing ORM vendors will be bought partly due to their unique capabilities and partly due to the huge and rapid shift in competitive dynamics.
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