M&A: AMCS Acquires FigBytes for Carbon Accounting, ESG Software Expansion

Environmental software provider AMCS has acquired sustainability software company FigBytes. The acquisition essentially extends AMCS's ESG software efforts from Europe to North America. Financial terms of the deal were not disclosed.

Together, AMCS and FigBytes plan to assist customers with compliance regulations such as CSRD (Corporate Sustainability Reporting Directive), a mandate that will impact organizations worldwide.

ESG and Sustainability Software Acquisition: About the Businesses

AMCS, founded in 2003, is based in Limerick, Ireland. The company develops software and vehicle technology for the environmental, waste, recycling and resource industries. More than 4,000 customers leverage AMCS technology. As of 2022, the business had more than 1,000 employees and a revenue run rate of roughly €180 million (US$19.3.2 million) or so.

AMCS is backed by Clearlake Capital Group, Insight Partners, Ireland Strategic Investment Fund (ISIF), and Highland Europe. Insight Partners and ISIF have funded the software company since 2015, investing in multiple rounds. Clearlake's investment arrived in 2022. We don't know when Highland Europe first invested in the business.

FigBytes, founded in 2014, is based in Ottawa, Ontario, Canada. The company's software allows customers to track and report various ESG activities -- such as carbon accounting, climate action, water impacts, and supply chain activities.

FigBytes had raised $25 million through November 2022. The funding included venture capital from Quantum Innovation Fund, and a $4.5 million debt facility from Silicon Valley Bank. We don't know FigBytes' pre- or post-money valuation from 2022, or the firm's more recent valuation.

This AMCS's second ESG software acquisition since June 2022. The earlier deal involved buying Quentic. AMCS has completed roughly 19 acquisitions since 2011, according to the company's website.

AMCS Acquires FigBytes: Executive Perspectives

In a prepared statement about the deal, AMCS CEO Jimmy Martin said: “Our mission is to create an environmentally sustainable future for our clients and their families, and we are excited to have FigBytes join us in these efforts. This acquisition underscores our mission to provide integrated, secure, and future-proof environmental software solutions that help clients across the globe accelerate their growth and sustainability.”

Added FigBytes Co-Founder and CEO Ted Dhillon: "For nearly a decade, we have equipped sustainability leaders everywhere with robust tools, resources, and expertise in order to put their ESG and sustainability programs into action. The combination of FigBytes’ award-winning Sustainability Platform and the AMCS suite of Environmental Software Solutions provides organizations with a unique, compelling offering and one of the clearest digital pathways to a more sustainable future while enabling them to comply with ESG regulations around the world. I’m incredibly confident that our alignment with AMCS will unlock tremendous opportunities for organizations to make an even greater positive change for people and the planet.”

M&A Trends Involving Sustainability Software, ESG Cloud Platforms

M&A activity in the sustainability software market has remained steady. Example deals involve:

• August 2023: Tango, backed by Berkshire Partners, acquired WatchWire, a sustainability management software company.
• July 2023: EcoOnline, backed by private equity firm Apax Partners, acquired Ecometrica in July 2023.

Funding in the ESG software market has also generated some activity. Example deals include:

• Measurabl, which develops an ESG technology platform for real estate, has raised $93 million Series D funding. 
• Novisto, which develops cloud-based ESG software, raised USD$20 million in a Series B funding round, led by Inovia Capital.
•  Sentra.World raised $2 million in seed funding, Entrepreneur India reported.

Related M&A List: See all M&A deals involving sustainability, green IT services & renewable energy listed here.