EcoOnline Acquires Ecometrica: Eco-nomic Benefits Meet Eco-logical Decision-Making

EcoOnline Acquires Ecometrica: Eco-nomic Benefits Meet Eco-logical Decision-Making

On July 5^th 2023, EHS and chemical management software provider EcoOnline announced the acquisition of Ecometrica – a GHG emissions and carbon accounting software firm headquartered in Edinburgh. The deal continues EcoOnline’s hot acquisition streak, following Alcumus’s EHS software division in January 2023. By our counting that makes it 13 acquisitions in around 4 years, highlighting the deep belief in market demand for diversified EHS and sustainability software offerings shown by EcoOnline’s private equity acquirer Apax Partners.

With almost all of the EHS management platform market currently taking aim at winning carbon management software buyers’ mindshare, this deal is right on trend. Consider Cority’s acquisitions of ESG software solutions WeSustain, Reporting 21 and Greenstone, IsoMetrix’s in-house development of ESG solution Lumina and the release of Intelex’s ESG reporting platform in June 2023. Here are three Verdantix learnings from the deal:

• Ecometrica strengthens EcoOnline’s play as a do-it-all EHS management platform.
  Having established a foothold in the European EHS software market through the acquisition of Airsweb, EcoOnline has been steadily broadening its functionality and deepening its existing chemical management strengths. The acquisition will add in-depth carbon management expertise to EcoOnline’s existing portfolio. Ecometrica’s CDP-certified platform offers an in-built database with over 150,000 emission factors and follows the GHG Protocol to calculate Scope 1, 2 and 3 emissions. The Ecometrica solution also features a climate risk assessment tool and TCFD reporting capability.
• EcoOnline’s core customer base remains mid-market European firms, but it is growing in the US.
  
  

  EcoOnline firmly positions itself as a European-focused mid-market offering, and has a particularly strong presence in Scandinavia. The onboarding of UK-based Ecometrica furthers EcoOnline’s ambition of becoming a mid-market leader in Europe and expanding its presence in the US, aided by the long-anticipated SEC climate disclosure regulation. Ecometrica’s emphasis on easy onboarding and speed of deployment is also suited to the priorities of small-to-medium sized buyers, further aligning with EcoOnline’s target market.

• Both parties foresee significant cross-sell opportunities across EHS and ESG.
  Verdantix research finds that the EHS function has a significant role in defining and influencing corporates’ ESG and sustainability strategy. Market demand for integrated solutions spanning both EHS and ESG functionality will generate significant cross-sell opportunities for both EcoOnline and Ecometrica. Through the acquisition, EcoOnline aims to capitalize on the existing corporate traction towards ESG regulatory compliance and competitive advantage, supporting existing clients and new leads in navigating the upcoming regulations.

No stranger to acquisitions, EcoOnline will use a well-established methodology to integrate Ecometrica’s solution. While the details of the combined offering remain blurry, EcoOnline will prioritize low-hanging fruit to streamline the user experience. Namely, developing a consistent UI and connecting master data, such as user identity and reporting hierarchies, are top of the list.

For more insights on the EHS, ESG and carbon management software markets, visit our website.