Australian listed technology developer EnviroSuite (ASX:EVS) has completed the sale of its consulting practice, Pacific Environment Consulting, to the world’s largest environmental consultant, Environmental Resource Management. The $15 million sale will allow EnviroSuite to refine its technology offering and fund the global expansion of its environmental monitoring solution.
EnviroSuite specialises in monitoring the work sites of government projects, utilities and mining companies, both domestically and internationally, for potential risks to the environment.
The company started in Australia as an environmental consultant in 1995 before developing a digital platform to consolidate the knowledge and skills of the consultancy. The platform has since become the core offering of the EnviroSuite.
Managing director of EnviroSuite, Robin Ormerod, says that the sale of PEC is integral in furthering the global reach of EnviroSuite’s technology.
“This is a transformational transaction for EnviroSuite as it becomes a focused, well-funded, global SaaS technology business,” Ormerod says.
“Our monitoring technology is quickly becoming industry standard and we’ve become active in many different global regions in a short amount of time. To facilitate this, we’ve decided to cease consulting activities and focus on delivering our monitoring solution.
“The sale and partnership with ERM was an unmissable opportunity; our technology complements their services and their reach will give us the exposure we need to continue to grow our company overseas.
“We look forward to working with ERM as one of our partners in the globalisation of the EnviroSuite platform.”
The company completed a series of large international deals and partnerships over the 2016 financial year, including ongoing trials with the world’s largest mining site, the Cerrejón mine in Colombia, and the largest air quality management district in the US, the South Coast Air Quality Management District (SCAQMD).
EnviroSuite believes that partnerships and M&A appetite in Australia, and globally, are on the rise and partnering with relevant and experienced offshore companies should be a key strategy for any technology business looking to break into international markets. The company has similar arrangements with global consulting giants Henningson Durham and Richardson Inc and Odournet.
“Partnering with recognised industry incumbents in targeted geographic regions is the primary route to market for EnviroSuite in new territories,” Ormerod says.
ERM has acquired all shares held by EnviroSuite Limited in Pacific Environment Pty Ltd, Pacific Environment Holdings Pty Ltd and DLA Environmental Services Pty Ltd. They will retain all their shares in EnviroSuite Operations Pty Ltd, EnviroSuite Holdings Pty Ltd and EnviroSuite Corp (USA).
There will be no changes to EnviroSuite’s shares on issue as a result of the sale, which remain at 231 million on issue.
