Data Firms Bet Regulation Will Revive Market for Climate Tools

Data firms that offer software or services to help companies comply with climate rules are snapping up rivals in a bet that a wave of new regulation will eventually reverse the sector’s sharp downturn.

Diginex Ltd., which has plunged more than 96% from a high last October, has completed three acquisitions since August, including a deal worth about €55 million ($65 million) confirmed this month to add carbon accounting and decarbonization specialist PlanA.earth GmbH.

Tokyo-based Asuene Inc., which cites Nidec Corp. and coffee chain Komeda Holdings Co. as among its customers, has carried out six transactions ...