Global private markets investor Partners Group announced an agreement to acquire a significant minority stake in EHS and ESG software platform VelocityEHS from CVC Capital Partners’ CVC Growth Fund.
Founded in 1996, Chicago-based VelocityEHS provides products aimed at helping customers comply with EHS laws and regulations. Earlier this year, the company launched VelocityEHS ESG Solution, its new platform streamilining data collection and reporting to help businesses plan, build and optimize their ESG programs and develop sustainable business strategies.
Chris Russell, Managing Director, Private Equity, Technology Industry Vertical, Partners Group, said:
“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.”
The announcement follows recent media reports indicating that CVC was exploring a sale of VelocityEHS for as much as $2 billion. CVC Growth acquired the company in 2017.
Key transformational opportunities highlighted by the companies following the investment will include accelerating the growth of VelocityEHS’ ESG product, as well as international expansion, new product development and strategic M&A.
John Damgaard, Chief Executive Officer, VelocityEHS, said:
“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.”
Aaron Dupuis, Partner at CVC, said:
“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.”