ProcessMAP Secures A Strategic Investment From Hg To Tap New Growth Opportunities

ProcessMAP Secures A Strategic Investment From Hg To Tap New Growth Opportunities

Kicking off the EHS software market with a bang in 2022, Florida-headquartered ProcessMAP announced on January 5th that it had secured a significant investment from Hg, a private equity investor with $40 billion of funds under management. Terms of the deal were not disclosed aside from indicating that the ProcessMAP management team will retain a significant stake in the business. Hg’s investment indicates the attractiveness of the EHS software market and the high valuation multiples that successful, established vendors like ProcessMAP can command.

The global EHS software market will be worth $1.63 billion in 2022 with a forecasted 11.5% CAGR between 2020 and 2026. ProcessMAP, a leader in the recent Green Quadrant benchmark, has historically focused on industries with high, medium and low EHS risk profiles which collectively represent 52% of the market compared to 48% for the very high-risk industries such as mining, oil and gas and nuclear. Long-standing ProcessMAP customers include Fiat Chrysler, Johnson Controls, Harkey Davidson and Valvoline. With close to 300 employees and operations in North America, Europe and India ProcessMAP is – like other EHS software vendors – at strategic cross-roads due to the centrality of environment and worker health issues in corporate strategies.

One direction for future growth for ProcessMAP is centred on worker health issues. This spans Covid-19 workplace compliance, vaccination programme management, operational resilience, psychosocial hazard management, ergonomics and mental wellbeing. Recent Verdantix research has identified a new category of digital mental health and wellbeing digital solution providers. Both office and industrial ergonomics are rising up the agenda due to the prevalence of musculo-skeletal disorders in millions of workers. Another burning hot opportunity for ProcessMAP is to leverage EHS software as a core application in a broader ESG platform. Sustainability materiality assessments in industrial sectors frequently find that the data relating to material ESG issues is already captured by modules such as air emissions, worker safety and pollution monitoring. Alternatively, middle income economies like Chile, China and Malaysia currently have very low penetration rates for EHS risk and compliance software. With a no-customization, cloud-only approach ProcessMAP could leverage the funds and expertise of Hg to embark on an ambitious international expansion strategy. A final direction to travel in would be to target the mid-market – and even small business segment – where there is a large volume of firms with no EHS compliance software installed.

With so many growth avenues, ProcessMAP and other EHS software vendors need to select product strategies which focus on specific segment level needs as delivering across all new usage scenarios, geographies and firm-level requirements will be too much of a stretch no matter how much funding has been locked in.