ECOVADIS acquired by CVC
Context
EcoVadis has secured a $200 million investment from CVC Growth Partners II, marking one of the largest equity investments in the ESG space at the time. This transaction represents the first investment from CVC Growth Partners' second fund. Existing investor Partech, which has supported the company since 2016, remains involved in the business. The strategic rationale for the deal is to accelerate EcoVadis' global expansion and further invest in its technology platform and sustainability intelligence solutions. Following a year of rapid growth (adding 10,000 companies to its network and opening offices in Tokyo, San Francisco, and Melbourne) the funding allows EcoVadis to meet the immense market demand created by evolving compliance regulations and corporate purpose commitments. CVC’s global reach is expected to play a critical role in scaling the business and establishing EcoVadis as the universal platform for supplier ESG ratings.
It is worth noting that the fund Partech Ventures took control of Ecovadis through an LBO in 2016.
ECOVADIS, which reported an EBITDA margin of in 2020, is valued in this transaction at an EV/EBITDA multiple of , a level to compare with the average currently observed in the TMT (Tech, Media, Telecom) sector (14.9x).
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Target
EcoVadis is the leading provider of globally trusted business sustainability ratings and scorecards. The organization operates a SaaS platform that provides evidence-based ESG intelligence across 200 industry categories and 175 countries. The entity's methodology covers environmental, social, and ethical practices, serving more than 95,000 businesses, including multinational giants like Amazon, L’Oréal, and JPMorgan. Its business model focuses on driving sustainability-led business decisions across global supply chains, private equity portfolios, and ESG-linked financing. By providing actionable benchmarks and carbon action tools (such as its Carbon Action Module), the firm supports companies in monitoring and improving the performance of their trading partners. Headquartered in Paris with 15 global offices, the firm has become the partner of choice for integrating sustainability intelligence into procurement and risk management ecosystems.
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REFERENCES
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Press release: view release
Acquirer: cvc