M&A: Novata Acquires Sustainability Management Software Startup Atlas Metrics for European Expansion

Novata, a sustainability data management platform, has acquired Atlas Metrics, a sustainability performance and reporting platform provider. The deal allows Novata to expand from North America to Europe. Financial terms of the buyout were not disclosed.

Together, Novata and Atlas Metrics now support more than 400 clients and more than 13,000 companies worldwide, the firms said. The combined business has teams in New York, London, Berlin, and Singapore.

Related Story: List of M&A deals involving carbon accounting and sustainability software.

Novata Buys Atlas Metrics: About the Businesses

Novata, founded in 2021, is based in New York. The company develops software to simplify ESG (Environmental, Social, and Governance) data collection, analysis, and reporting for private market investors. 

Novata in 2024 launched Novata Carbon Navigator, a software platform that allows customers to calculate Scope 1, 2, and 3 emissions. The overall software platform allows private companies and investors to collect, analyze, benchmark & report relevant ESG data. Key Novata partners include ERM --  which positions itself as world’s largest pure play sustainability consultancy.

Novata in 2025 raised a funding round led by S&P Global, with participation from Hamilton Lane, Motive Ventures, The Ford Foundation, and Novata co-founders Alex Friedman and Josh Green. The financial details were not disclosed. An earlier round, Series B funding in 2023, raised $30 million. Hamilton Lane led that Series B round, with participation from multiple investors -- including Microsoft's Climate Innovation Fund.

Novata had 125 employees listed on LinkedIn as of October 2025 -- up from 90 employees listed on LinkedIn as of March 2023.

Atlas Metrics, founded in 2021, is based in Berlin, Germany. The company develops software to simplify sustainability reporting and risk identification. Key customers include hundreds of banks and various venture capital firms.

Atlas raised €12.2 million in Series A funding in September 2024.  

Carbon Accounting and Sustainability Software M&A: Executive Perspectives

In a prepared statement about the deal, Novata CEO and Co-Founder Alex Friedman said: “This acquisition is an important step toward building the global leader in sustainability management. By welcoming Atlas Metrics into the Novata family, we’re delivering on our mission to transform sustainability data into business resilience. Together, we have the scale, technology, and global expertise to help companies and investors turn ESG data management, regulatory readiness, and benchmarking into drivers of long-term value creation.”

Added Atlas Metrics CEO Wladimir Nikoluk: “From the start, we saw a natural alignment with Novata, both in mission and in culture. Atlas Metrics has always believed that sustainability management should be simple, scalable, and rooted in technology. Joining Novata lets us deliver on that belief at global scale, giving our clients across and beyond Europe the innovation, efficiency, and trust they need to succeed in a rapidly evolving sustainability landscape.”

The combined business has teams in New York, London, Berlin, and Singapore. Novata emphasized that it maintains a ",strong balance sheet and world-class partners," though specific financial details about the business were not disclosed.

Climate Tech and Carbon Accounting Software: Market Challenges?

The M&A deal surfaces at a key time. Dozens of climate tech startups are struggling to find new funding and new customers amid recent geopolitical headwinds.

Indeed, the U.S. federal government has rolled back and/or abandoned various climate initiatives since President Donald Trump's second term began in January 2025.

As a result, many venture capitalists (VCs), private equity firms and angel investors have hesitated to fund existing or new climate tech startups. The geopolitical headwinds could force some climate tech businesses to shutter and/or sell their intellectual property at steeply discounted valuations.

Amid the market turbulence, M&A activity involving carbon accounting software remains steady.

For its part, Novata maintains a "strong balance sheet and world-class partners" -- though specific financial details about the company are disclosed.