EHS Software Market Experiencing Transformational Shift



The EHS information management software market emerged on the scene in the mid 1990’s with the goal of simplifying and streamlining EHS compliance management.  Over the course of the last 20+ years, EHS software capabilities have dramatically improved while there has been a concurrent steady increase in organizations purchasing and implementing these solutions.  This growth led to an uptick in available software solutions in recent years.  These primarily cloud-based solutions provide organizations with a variety of new technology offerings and business models.

Over the last 12 months, there has been an explosion of market activity including numerous mergers, acquisitions, and capital investments in the EHS software market.  While many of these transactions were not completely unexpected, the flurry of transactions in such a small timeframe is unprecedented; and the activity may continue for the remainder of 2016.  Software vendors and investors alike are jockeying to capture their share of a nearly $1 billion market that is expected to see 11% annual growth1.  Here is a quick summary of the major transactions that have occurred: 

  • Enviance, an enterprise cloud-based EHS software solution, was acquired by investment firm Battery Ventures in early 2015.  Battery is a technology focused investment firm with both venture capital and private equity business lines.  On June 21, 2016, Enviance acquired Actio, a cloud-based EHS software product focusing on materials and supply chain management. With this added capability, Enviance can leverage Actio’s capabilities to enhance its materials tracking, product stewardship and workplace safety capabilities.
  • cr360, a UK-based company was acquired by UL (Underwriters Laboratories), a safety science company on Feb 2, 2016. This acquisition improves UL’s ability to capture and report on its customers’ sustainability data.
  • Enablon was acquired by Wolters Kluwer, a publicly traded Dutch firm, on May 31, 2016.  Enablon joins Wolters Kluwer’s Legal and Regulatory division and provides Wolters Kluwer with the hope of finding synergies between the new software offering with the division’s existing impressive customer base.
  • Intelex, a Canadian company acquired Ecocion on June 29, 2016 to expand its North American footprint and capitalize on Ecocion’s deep oil and gas EHS compliance expertise. This strategic move provides Intelex with deep penetration to the complex emissions data management market and a platform to expand its operation to other verticals. Intelex was able to make this purchase as a result of a USD $123 million investment received from JMI Equity and HarbourVest in 2015.
  • IHS’s Operational Excellence & Risk Management Business (OERM) was acquired by Genstar Capital, a middle-market private equity firm on June 1, 2016. Projected to be headquartered in Chicago, OERM has over 500 employees and 2,500 customers, many of which were early champion customers that adopted and invested in EHS software. 
  • CMO Software, a web-based EHS and GRC solution was acquired by Mitratech, a provider of Enterprise Legal Management (ELM) solutions on June 21, 2016 to strategically add to its portfolio of compliance and risk management solutions. 
  • MSDSonline, a cloud based EHS solutions provider, and its wholly-owned subsidiary Knowledge Management Innovations (KMI) merged and began doing business as VelocityEHS on September 28, 2015. The goal of this merger was to leverage the strengths of both solutions to deliver the most affordable, easiest to implement, and simplest user experience in the market.  

The changes in the EHS software space are expected to produce better solutions for keeping up with regulatory developments and provide a framework for efficiency and improvement of manual or semi-automated EHS processes.  Given the magnitude and number of transactions, we may look back on this as a critical turning point in the ultimate transformation of the EHS software market.  With that said, mergers and acquisitions take time, effort, and well thought out strategies to realize the value.  Existing and prospective customers should be encouraged about potential product improvements but prudent about evaluating the immediate impact of these marketplace changes on current or future technology investments.

For more information on how EHS software can streamline your processes, please contact Trinity’s EHS Information Technology Solutions Director, Jason Schmitz at jschmitz@trinityconsultants.com or (240) 379-7490 x112.

[1] Market size and growth projects from Verdantix: http://www.verdantix.com/newsroom/eh-s-market-news/verdantix-says-the-global-market-for-eh-s-software-will-expand-by-11-annually-to-reach-1-4-billion-in-2020