On April 28, 2015 Enviance announced that it had acquired Remedy Interactive a software vendor with products targeted at incident management, job hazard analysis, office ergonomics and desktop ergonomics. Remedy Interactive was founded in 2001 and is headquartered in Sausalito, California. At the time of the acquisition, Verdantix estimates that Remedy Interactive had 20 employees and annual revenues of between $3m and $4m. Applying standard valuation metrics, this implies an acquisition price between $4.5m and $8m. The actual price could have been higher due to the elevated interest of the private equity community in small EH&S software vendors.
The acquisition is a good fit for Enviance which scored highly in the 2014 Verdantix EH&S software product benchmark on multiple environmental impact areas but did not achieve such high scores on occupational health and incident management. The deal also provides Enviance with access to firms in the aerospace, consumer goods, local government, healthcare and high-tech markets. Remedy Interactive customers include the Dutch Ministry of Agriculture, Gilead, JDSU, Johnson & Johnson, Kaiser Permanente, Microsoft, MIT, NetApp, Northtrop Grumman, Pfizer, PG&E, SanDisk, Sony, The Clorox Company and Visa. The firm had also implemented channel partner relationships with ergonomics specialists Ergo Comfort (Belgium), Contentus (Denmark) and Arets Ergonomie (Germany).
Whilst the acquisition will support the Battery Ventures financed build out of the Enviance platform into a broader EH&S play it won’t alter competitive dynamics in the EH&S software market. Vendors such as Enablon, Intelex and ProcessMAP already offer applications which cover the full range of environmental, health and safety impact areas. Suppliers like CMO Compliance, Medgate and Rivo Software are fast developing broader suites which will be at least comparable to the Enviance + Remedy Interactive offering. What the acquisition does is pile further pressure on private equity houses not yet invested in the market and CEOs of private equity-funded firms who are seeking to grow through acquisition. The potential to undertake small, bolt-on deals will likely be over by 2016. Only 5 or so small players remain and most are already in play.