AI-Driven Consolidation: Accelerating Deal Activity in the SSD Sector
Sustainability – Software & Data: M&A Activity Accelerates in H1 2026
Goldenhill’s latest sector review tracks the M&A and fundraising transactions completed or announced across the sustainability software, data and services market in the first half of 2026. Activity is broadening on both sides of the ledger: buyers are consolidating specialist ESG and decarbonisation capability into larger platforms, while investors continue to back the next generation of climate and carbon data businesses.
98
M&A deals, up 15% year-on-year from 85
25
M&A deals in which AI capability was named as a driver, out of 98 total M&A deals in H1 2026
Consolidation Concentrates in ESG Consulting and Energy Decarbonisation
M&A volume rose to 98 deals from 85 in H1 2025, and tracked activity has grown at a 27.8% CAGR since H1 2024. Strategic buyers accounted for 61% of transactions and private-equity-backed platforms a further 31%, with direct financial buyers making up the remainder. ESG Consulting & Sustainability Services was the busiest subsector, at 26% of deal volume, followed by Energy & Built Environment Decarbonisation (15%) and Carbon Accounting & Management (13%).
The half’s two largest transactions both sat in ESG consulting: WSP Global’s $3.3bn acquisition of TRC Companies, and Applus+’s $454m purchase of UK environmental consultancy APEM Group. Both deals point to the same logic: engineering, testing and inspection groups are paying up for environmental permitting, compliance and advisory capacity as clients navigate grid modernisation and electrification.
Selected M&A Transactions
WSP Global → TRC Companies | $3.3bn | ESG Consulting & Services
Applus+ → APEM Group | $454m | ESG Consulting & Services
Peak Rock Capital → UL Solutions EHS software business | c.$202m | ESG Reporting & Compliance
Beazley → kWh Analytics | nd | Climate Risk
MSCI → First Street (pending) | $120m | Climate Risk
Cross-Border Activity Remains High on Both Sides of the Market
European buyers were involved in 62% of M&A transactions, and 45% of deals overall crossed a border in which the buyer was headquartered outside the target’s home country. Europe led on both buyer and target counts in the M&A data, followed by North America and Asia-Pacific.
“AI is now the most common stated reason to buy or back a sustainability business, and investors are actively backing companies to establish market leaders across carbon accounting, climate risk and energy decarbonisation.”
— William Berrington, Partner & M&A Advisor, Goldenhill International M&A Advisors
Looking Ahead
With M&A accelerating year-on-year and AI capability now cited in more than a third of all tracked transactions, established groups will likely keep adding specialist sustainability software, data and services capability through acquisition.
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Author: William Berrington
Partner
Highly experienced M&A advisor with a particular emphasis on ESG and HR Technology globally; assignments include working with leading businesses in ESG (Environmental, Social and Governance) software and data and HR Technology (HRTech).
William has advised on technology sector M&A transactions in more than 12 countries, working on transactions on the sell-side and buy-side. A Chartered Accountant by background, he held corporate development roles at several blue-chip technology companies and also worked for a private markets firm before joining Goldenhill.
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