AMCS’s Acquisition Of Quentic Shakes Up The European EHS And ESG Software Market Competitive Landscape
16, May 2022
AMCS’s Acquisition Of Quentic Shakes Up The European EHS And ESG Software Market Competitive LandscapeOn May 12th, AMCS, a global supplier of integrated software and vehicle technology for the environmental, utility, waste, recycling, and resource industries, has signed an agreement for the acquisition of Quentic, a German-headquartered EHS and sustainability software provider. The transaction is expected to close within the coming weeks following regulatory approval. Due to both parties signing non-disclosures, no official details of the transaction have been released.
The transaction fits AMCS’s offering and strategy for three broad reasons. Firstly, from a software functionality perspective, AMCS’s cloud offerings in waste, recycling and complex logistics management solutions compliments Quentic’s broad EHS and ESG portfolio. Aside from a robust safety offering, Quentic’s relative strengths in environment management and sustainability reporting will broaden AMCS’s expertise in the environmental services industry. Moreover, if AMCS and Quentic successfully integrate EHS into logistics process, customers will be able to manage EHS considerations across their supply chain and minimize waste. Given the growing focus on net-zero and decarbonization, tying EHS into logistics will also help firms to solve pressing ESG challenges.
Secondly, the acquisition supports AMCS’s existing acquisition strategy. In January 2022, AMCS acquired Utilibill, a leading Australian-based cloud billing platform. While in November 2021, the firm acquired US-based Dossier Systems, a provider of fleet maintenance management solutions. The above acquisitions all further AMCS’ goal of being a technology partner for customers on their journey to net-zero carbon, resource sustainability and the circular economy.
Thirdly, being headquartered in Germany and having numerous locations across Europe, Quentic offers strong brand recognition and a robust customer base in the European market. Additionally, AMCS may utilize its locations and existing customer base in North America and Australia to cross-sell Quentic’s software and expand its geographic reach. To provide context for the scale of the combined entity, the firms will have a collective 4,000 customers and will be on track to achieve run rate revenues greater than €180 million by the end 2022.
This acquisition is a divisive move in the European EHS software market, one that could prove transformative for Quentic as it expands its geographic reach and integrates with AMCS’s waste, recycling and complex logistics solutions. For more insights on the EHS software market see Verdantix research.