M&A: Deloitte Canada Acquires Sustainability Consultancy Fleet Challenge

Deloitte Canada has acquired Fleet Challenge Canada Inc. to bolster its sustainability practices across the country. Financial terms of the deal were not disclosed.

The acquisition expands Deloitte Canada's existing offerings for mid-market and large clients in fleet management, decarbonization, and electrification strategies, the buyer said.

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

Deloitte Canada Acquires Fleet Challenge: Business Backgrounds

Deloitte Canada, backed by roughly 14,500 employees, generated $3.87 billion in annual revenue for 2023. In contrast, Deloitte US, featuring has roughly 171,000 employees, generated $32.7 billion in annual revenues for 2023.

The Deloitte businesses provide audit and assurance, consulting, financial advisory, risk advisory, tax, and related services to public and private clients spanning multiple industries. The global IT consulting firm also offers managed IT services, cloud services and other technology capabilities.

Fleet Challenge, founded in 2005, offers more than consulting services. The company also developed Fleet Analytics Review (FAR) -- a software tool that "uses historical operating data for go-forward predictive analysis and forecasting, making fleet review processes and the path to net-zero thorough and efficient," the company said.

Deloitte Canada Acquires Fleet Challenge: Executive Perspectives

In a prepared statement about the acquisition, Deloitte Canada CEO Anthony Viel said: “We’re excited to welcome Fleet Challenge into the fold, not only because of their strong relationships and reputation, but also the breadth and level of their capabilities and industry knowledge. It’s clear the team is a highly valuable addition to our firm. Combining Deloitte’s leadership and commitment to sustainability with Fleet Challenge’s industry expertise and client-centric approach strengthens the way we serve and deliver value to our clients in the climate, sustainability, and fleet decarbonization space.”

Added Fleet Challenge CEO Roger Smith, who now transitions to Deloitte: “What a bright and exciting next chapter for our team! We are eager to be joining Deloitte, knowing the firm’s strong commitment to sustainability and social responsibility.Clients will derive incomparable value by working with a single entity. By combining our deep industry knowledge and specialized skills with Deloitte’s global network and strong reputation, we know we can help Canadian fleets optimize their operations and navigate critical challenges to achieve their firm and ambitious targets to reduce GHG emissions. Together we have a stronger advantage, and we will deliver amazing solutions for our clients.”

Added Deloitte Canada Partner Sarah Buckle via LinkedIn: "We’re thrilled to announce Deloitte’s acquisition of Fleet Challenge! Deloitte's commitment to a greener future aligns seamlessly with Fleet Challenge's expertise in fleet decarbonization. Together, we'll empower public and private fleets to navigate challenges and achieve peak performance. Roger Smith, Fleet Challenge's CEO, joins as a key advisor in our Fleet Decarbonization practice. With proprietary tools like Fleet Analytics Review (FAR), we're poised to deliver efficient solutions and drive impactful change. Here's to a sustainable tomorrow!"

Concluded Deloitte Partner Elizabeth Baker via LinkedIn: "Welcome Fleet Challenge to the Deloitte family, bringing a wealth of expertise in fleet management and decarbonization. Together, we're set to redefine the landscape of sustainable solutions. I’m excited to have Roger Smith, President, and CEO of Fleet Challenge, on board as a key advisor in our Fleet Decarbonization practice, along with a talented network of contractors. And I’m looking forward to the innovative strides we'll take as we merge Deloitte's leadership with Fleet Challenge's industry know-how. Here's to a future of impactful collaborations and sustainable success!"

Global IT Consulting and Sustainability: Rivals and Market Forecast

Deloitte has been making key sustainability moves and inking green IT services partnerships worldwide. Rivals -- such as Accenture, EY, KPMG and PwC -- also continue to expand their sustainability business practices and associated software development.

Among the reasons: Global spending on sustainability business services will reach $65 billion in 2027, up from $37.7 billion in 2023, according to an IDC market forecast. That's a 14.9% CAGR (compound annual growth rate) during the forecast period, IDC said.

Moreover, the global green IT services market will reach $33.64 billion by 2031, up from $13.72 billion in 2022, according to Astute Analytical. That's a 10.48% compound annual growth rate (CAGR) during the forecast period, the company said.