Wolters Kluwer Legal & Regulatory announced today that it has acquired eVision Industry Software BV, a global provider of industrial operational risk management software, for $145 million, excluding a deferred contingent consideration.
eVision is a global leader in industrial operational risk management (IORM) software for the oil & gas, chemical, pharmaceutical, and other high-risk and high-precision industries. Its modular solution allows customers to improve control over their operational processes, reducing risk, increasing safety, and delivering efficiencies. eVision serves five of the oil & gas supermajors and is expanding its services to industry leaders in the chemical and pharmaceutical market.
eVision will be aligned with the Enablon business unit, creating the largest software business within Wolters Kluwer’s Legal & Regulatory division. eVision software and services are highly complementary to Wolters Kluwer’s Enablon environmental, health & safety (EHS) and operational risk management (ORM) platform. eVision and Enablon already have an active partnership in place.
The combination of eVision and Enablon is well-positioned to respond to the growing demand for a solution that provides a holistic process for control of environmental, health & safety and operational risks. Both solutions are rated as leaders by independent research firm Verdantix. Enablon has been partof Wolters Kluwer Legal & Regulatory since 2016, and in the first half of 2018, recorded double-digit organic growth driven by recurring revenues for its cloud-based solution.
The eVision platform, One Vision, is a configurable, mobile-ready, enterprise solution that covers control of work, environmental, health & safety (EHS), and process safety management. The modules include, amongstothers, permit to work, shift handover, barrier management, process and job safety analysis, and risk assessments. The platform integrates with major ERP systems and other frontline operational software, and is available on-premise and in the cloud. Founded in 2008, eVision has 225 employees and offices in the Netherlands (headquarters), U.K., Qatar, and the U.S.
eVision recorded revenues of $25 million in 2017 and is expected to achieve double-digit revenue growth in 2018. While eVision’s on-premise software remains in strong demand, future growth is expected to be driven primarily by recurring revenue from the company’s cloud-based offerings. In 2017, approximately 20% of revenues was recurring and nearly 80% was booked in U.S. dollars. Margins currently reflect investment to drive growth. An initial consideration of $145 million was paid upon completion; up to $35 million in additional consideration may become payable in the future depending on certain financial and strategic targets being met. Wolters Kluwer expects the acquisition to deliver a return on invested capital above ourafter-tax weighted average cost of capital (8%) within 3 to 5 years. The effect on Wolters Kluwer adjusted netprofit is positive but insignificant in the medium term.
“The acquisition of eVision solidifies Wolters Kluwer as a leader in both environmental, health & safety, and industrial operational risk management software, and expands the value we deliver to corporations and our role in supporting their most critical workflows,” said Legal & Regulatory division CEO Stacey Caywood.
“We’re very excited to continue our journey with Wolters Kluwer, as we scale our innovation and solutions to the entire global operational market,” said Peter Kortenhorst, CEO of eVision. “Our operational safety solution is highly complementary with Enablon’s EHS & risk management platform. Together, we create a market-defining leader in the industrial operational risk management space, delivering efficiency, safety and risk management from the corporate office to the day-to-day operations.”