IHS Acquires Environmental Support Solutions, Inc.
Addition of ESS Environment Information Solutions Gives IHS Unparalleled Offerings in the Environmental, Health and Safety Market
ENGLEWOOD, Colo.--(BUSINESS WIRE)--IHS Inc. (NYSE: IHS), a leading global source of critical information and insight, today announced the acquisition of Environmental Support Solutions, Inc. (ESS), a leading provider of environmental, health and safety (EHS) and crisis management software for enterprise sustainability, for approximately $59 million, net of cash acquired. The purchase price represents about three times revenue and a high single-digit multiple of forward adjusted EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization).
“With this acquisition, our worldwide customers have access to best-in-class products and services from IHS that meet their growing need to manage environmental, climate change and compliance issues – all from a single provider,” said IHS Chairman and Chief Executive Officer Jerre Stead. “The acquisition of ESS is another step in achieving the potential of our environment growth strategy, solidifying the IHS commitment to being the leader in global Environmental, Health & Safety (EHS) management solutions as well as helping our customers solve problems by being at the forefront of innovation in sustainability and climate change management.”
ESS is an established global player in the Environmental, Health and Safety Information System (EHS-MIS) market whose people, software and customer base strengthen and further differentiate the IHS portfolio. ESS provides software and related services that enable organizations to address EHS and crisis management challenges more efficiently, at lower cost, while improving the quality and accuracy of internal and external reporting.
IHS is unique in the marketplace in its ability to give companies the means to combine internal operational data with external information to support strategic decision-making around sustainability solutions for EHS and climate change. The acquisition of ESS further extends the IHS capabilities in this arena by bringing together two of the leading solution providers.
“At a time when environmental compliance and sustainability are strategic issues to all businesses and governments worldwide, ESS brings significant additional content, EHS expertise, software and people that will enhance the IHS solutions portfolio,” Stead added. “The combined talent, technology and vision of IHS and ESS will enable a superior customer experience and support the company’s rapid growth pace. ESS is a financially sound company that brings strong revenue and profit growth potential to the Environment domain.”
ESS President and Chief Executive Officer Robert Johnson said: “Since the beginning, it has been our goal to serve customers with pioneering software and expert services designed to meet virtually all of their environmental, health and safety, and crisis management requirements. Now, as companies worldwide are making environmental stewardship and corporate sustainability a core part of their mission and operations, IHS will have additional talent and technology to create new products and services to meet customers’ growing demand for environmental support.”
ESS has a global client base covering the U.S., Asia, Europe, the Middle East and South America that complements the current IHS customer footprint. Thousands of organizations have purchased ESS software, in every major industry sector, including more than half of the Fortune 500 and 75 percent of the Fortune 100.
The acquisition of ESS supports the IHS strategy to strengthen and grow its capabilities and offerings in the environment space, which began with the acquisitions of EnvironMax, Dolphin Software and Environmental Software Providers in 2007 and 2008.
ESS was established in 1993 and employs 102 people. The company is headquartered in Tempe, Ariz. with major U.S. offices in Denver, Houston, Washington, D.C., international offices in Beijing and Calgary, Canada.
About IHS (www.ihs.com)
IHS (NYSE: IHS) is a leading global source of critical information and insight, dedicated to providing the most complete and trusted information and expertise. IHS product and service solutions span four areas of information that encompass the most important concerns facing global business today: Energy, Product Lifecycle, Security, and Environment, all supported by Macroeconomics. By focusing on customers first, IHS enables innovative and successful decision-making for customers ranging from governments and multinational companies to smaller companies and technical professionals in more than 180 countries. IHS is celebrating its 50th anniversary in 2009 and employs approximately 4,000 people in 20 countries.
About ESS (www.ess-home.com)
ESS is the leading provider of Environmental, Health & Safety (EHS) and Crisis Management software for enterprise sustainability. Founded in 1993, the company has provided global and local software solutions for thousands of businesses, government agencies and other organizations. ESS is headquartered in Tempe, Ariz. with offices worldwide.
IHS is a registered trademark of IHS Inc. All other company and product names may be trademarks of their respective owners. Copyright © 2009 IHS Inc. All rights reserved.
IHS FORWARD-LOOKING STATEMENTS: This release may contain forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995. Forward-looking statements are statements that are not historical facts. Such statements may include financial projections and estimates and their underlying assumptions, statements regarding plans, objectives and expectations with respect to future operations, products, and services, and statements regarding future performance. Forward-looking statements are generally identified by the words "expect," "anticipate," "believe," "intend," "estimate," "plan" and similar expressions. Although IHS and its management believe that the expectations reflected in such forward-looking statements are reasonable, investors are cautioned that forward-looking information and statements are subject to various risks and uncertainties--many of which are difficult to predict and generally beyond the control of IHS--that could cause actual results and developments to differ materially from those expressed in, or implied or projected by, the forward-looking information and statements. These risks and uncertainties include those discussed or identified by IHS from time to time in its public filings. Other than as required by applicable law, IHS does not undertake any obligation to update or revise any forward-looking information or statements. Please consult our public filings at www.sec.gov or www.ihs.com.
Contacts
IHS Inc.
News Media Contact:
David E. Pendery, 303-397-2468
david.pendery@ihs.com
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Investor Relations Contact:
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