Partners Group to acquire a significant minority stake in VelocityEHS, a leading environmental, health, safety and sustainability software platform
Posted on August 16, 2022 | in EHS
Denver, US; 16 August 2022
- Partners Group will join existing owner CVC Growth Funds on VelocityEHS’ board
- The Company’s SaaS products help customers comply with environmental, health, and safety laws and regulations, power sustainability initiatives, and drive operational excellence
- The EHS and ESG software markets continue to benefit from strong thematic trends such as growing pressure on companies to decarbonize
Partners Group, a leading global private markets firm, has, on behalf of its clients, agreed to acquire a significant minority stake in VelocityEHS (“the Company”), a leading environmental, health, and safety (“EHS”) and environmental, social and governance (“ESG “) software platform based in the US, from CVC Growth Funds (“CVC Growth”). Following the transaction, Partners Group will join CVC Growth on the Company’s board.
Founded in 1996 and headquartered in Chicago, VelocityEHS is a Software-as-a-Service (“SaaS”) platform offering products that help customers comply with a wide range of EHS laws and regulations, manage and reduce risk, and improve operational efficiency. VelocityEHS offers EHS software solutions that help customers across various use cases, including ESG management, Environmental Compliance, Safety, Ergonomics, Control of Work, Operational Risk, and Health. The Company has over 18,000 customers, with a focus on serving the manufacturing, food & beverage, pharmaceuticals, and chemicals sectors. The EHS/ESG software market is benefitting from strong thematic trends such as growing pressure on companies to decarbonize and disclose environmental sustainability information, as well as an increasingly complex regulatory environment. CVC Growth acquired VelocityEHS in 2017.
Following the investment, Partners Group and CVC Growth will work with the Company’s management team to continue to drive growth at VelocityEHS and cement its position as a leading player in the EHS and ESG software market worldwide. Key transformational value creation initiatives will include accelerating the growth of the Company’s ESG product, expanding into international markets, developing new products, and pursuing strategic acquisitions.
John Damgaard, Chief Executive Officer, VelocityEHS, comments: “EHS/ESG software adoption in the US and around the world is rising as organizations seek operational excellence and sustainable operations. Our massive customer base includes some of the world’s most admired companies. Our enterprise-grade VelocityEHS Accelerate® platform with embedded ActiveEHS® technology, and our award-winning solution set, allow us to have a very real impact in making workplaces safer and more sustainable up and down supply chains worldwide. We are very excited to continue our journey to establish the global category leader in EHS/ESG software with two world-class global financial sponsors in CVC Growth and Partners Group.”
Chris Russell, Managing Director, Private Equity, Technology Industry Vertical, Partners Group, says: “Our thematic research identified EHS as an attractive sub-sector of the US software market due to its large size, strong secular growth trends, and fragmented landscape. VelocityEHS is a market-leading SaaS platform in this space, with a comprehensive product portfolio, and we have strong conviction in its future prospects. We look forward to working with management and our partners at CVC on scaling VelocityEHS further and executing on the value creation plan.”
Aaron Dupuis, Partner at CVC, adds: “We are proud of the fantastic progress VelocityEHS has made since we invested in 2017. Working in close partnership with John and his team, we have been able to significantly accelerate the Company’s development both organically and through acquisition. We have enhanced the Company’s leading market position and expanded its addressable markets through new product launches and geographic expansion. We know Partners Group well and are very pleased to bring them on board and look forward to working closely with them to realize this next stage of growth for VelocityEHS.”
Partners Group was advised by Ropes & Gray LLP and Price WaterhouseCoopers LLP; CVC Growth by Weil, Gotshal & Manges LLP and William Blair; and VelocityEHS by Burns & Levinson, LLP.
About Partners Group
Partners Group is a leading global private markets firm. Since 1996, the firm has invested USD 185 billion in private equity, private real estate, private debt, and private infrastructure on behalf of its clients globally. Partners Group seeks to generate strong returns through capitalizing on thematic growth trends and transforming attractive businesses and assets into market leaders. The firm is a committed, responsible investor and aims to create sustainable returns with lasting, positive impact for all its stakeholders. With USD 131 billion in assets under management as of 30 June 2022, Partners Group provides an innovative range of bespoke client solutions to institutional investors, sovereign wealth funds, family offices and private individuals globally. The firm employs more than 1,600 diverse professionals across 20 offices worldwide and has regional headquarters in Baar-Zug, Switzerland; Denver, USA; and Singapore. It has been listed on the SIX Swiss Exchange since 2006 (symbol: PGHN). For more information, please visit www.partnersgroup.com or follow us on LinkedIn or Twitter.
CVC is a leading private equity and investment advisory firm with a network of 25 offices throughout Europe, Asia and the US, with approximately €125 billion of assets under management. Since its founding in 1981, CVC has secured commitments in excess of €163 billion from some of the world’s leading institutional investors across its private equity and credit strategies. Funds managed or advised by CVC are invested in over 100 companies worldwide, which have combined annual sales of approximately €100 billion and employ more than 550,000 people. For further information about CVC please visit www.cvc.com and follow us on LinkedIn.
About CVC Growth
Launched in 2014, CVC Growth is the growth-oriented middle-market technology investment arm of CVC Capital Partners. CVC Growth primarily targets equity investments between $50 million and $250 million in North America and Europe and manages over US$3 billion in assets across two dedicated funds. For further information about CVC Growth please visit: www.cvc.com/growth.
Relied on by more than 10 million users worldwide to drive operational excellence and achieve outstanding outcomes, VelocityEHS is the global leader in true SaaS enterprise EHS & ESG technology. The VelocityEHS Accelerate® Platform is the definitive gold-standard for environmental, social, and corporate governance (ESG), delivering best-in-class capabilities for materiality assessments, safety, industrial ergonomics, control of work, health, operational risk, and environmental compliance. The VelocityEHS team includes unparalleled industry expertise, with more certified experts in health, safety, industrial hygiene, ergonomics, sustainability, the environment, AI, and machine learning than any EHS software provider. Recognized by the EHS industry’s top independent analysts as a Leader in the Verdantix 2022 Carbon Management and 2021 EHS Green Quadrant Analyses—VelocityEHS is committed to industry thought leadership and to accelerating the pace of innovation through its software solutions and vision. Its privacy and security protocols, which include SOC2 Type II attestation, are among the most stringent in the industry. VelocityEHS is headquartered in Chicago, Illinois, with locations in Ann Arbor, Michigan; Tampa, Florida; Oakville, Ontario; London, England; Perth, Western Australia; and Cork, Ireland. For more information, visit www.EHS.com or follow us on LinkedIn
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