⚠️ Upcoming activity in EHS Data & Analytics - Asymmetrix Newsletter #80
The M&A pipeline is strong for Environmental, Health, and Safety compliance Data & Analytics.
This week we turn our attention to the Environmental, Health & Safety (EHS) compliance space, which we discussed at length in a recent post for customers of the Asymmetrix subscription product (not on Substack).
Long seen as a back-office necessity, EHS has become a high-value Data & Analytics sector, driven by regulatory complexity, ESG pressures, and sticky subscription models.
With strategic acquirers and private equity circling, in this post we explore some of the EHS M&A deals currently in the pipeline.
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⚠️ Digging into the EHS Data & Analytics sector
What is EHS?
Environmental, Health, and Safety (EHS) refers to the frameworks and processes that organisations follow in order to protect employees and to comply with regulatory standards. Because EHS requirements shift over time and vary across jurisdictions, having access to up-to-date EHS Regulatory Data & Analytics is critical. EHS Data & Analytics platforms provide this regulatory intelligence in real time, enabling businesses to automate compliance and reduce risk.
Why is it attractive to investors?
Regulatory Tailwinds: Increasing regulations around workplace safety and environmental matters creates demand for EHS Data & Analytics solutions;
Compliance is Non-Negotiable: Financial and reputational costs of non-compliance with regulations are significant, making EHS platforms essential for businesses;
Sticky Assets: EHS platforms are not one-off expenses, as they provide continuously updated compliance data for companies, which ensures long-term customer retention and recurring subscriptions revenue;
Strategic Positioning: Overlap with ESG and sustainability has broadened the importance of EHS, enabling these platforms to also serve companies’ corporate risk and sustainability reporting needs.
EHS M&A activity
There has been a lot of consolidation in the EHS Software and Data & Analytics sector, with private equity and strategic buyers scaling their platforms through M&A. Companies like PE-backed 3E (New Mountain Capital and Endicott), Enhesa (CGE Partners), and VelocityEHS (CVC Growth) - have acquired smaller businesses in recent years, reflecting the immense interest in the sector.
Further activity is expected in the sector in the near-term:
Hexagon has recently announced plans to spin-off of their Asset Lifecycle Intelligence Division;
Blackstone has reportedly hired Evercore and William Blair to sell Sphera for an estimated $3bn;
Thoma Bravo was reported last year to be exploring a sale of Cority at a valuation around $2bn;
KPA, acquired in 2018 by Providence Equity Partners, is likely to come to market soon; Asymmetrix subscribers can access our recent Company Analysis of KPA;
Health & Safety Institute (HSI), acquired in 2019 by Waud Capital, is also likely to be sold off soon.
With heavyweight assets coming to market and regulatory pressures only intensifying, EHS is no longer just a compliance toolset - it’s becoming core infrastructure for global businesses.
For investors, the EHS sector offers a rare mix of resilient recurring revenue, consolidation opportunities, and strategic relevance.
In short: the question isn’t whether capital will flow into EHS, but which firms will move fastest.
📧 If you would like access to Asymmetrix’s underlying data via our subscription product, contact us directly at a.boden@asymmetrixintelligence.com
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