EQT Private Equity has announced the acquisition of Avetta, a leading supply chain risk management software company, from Welsh, Carson, Anderson & Stowe.

Arvindh Kumar, Partner and Co-Head of Technology within EQT’s Private Equity Advisory Team, said, “Avetta’s leadership position, world-class SaaS platform, and commitment to ESG represent a highly thematic investment opportunity for EQT. As one of the most active technology investors worldwide, EQT has deep software expertise and a broad network of advisors in the space. We look forward to partnering with Avetta and the management team on its next phase of growth and are excited to address some of the most pressing challenges in the supply chain sector.”

Avetta’s SaaS platform has been pivotal in managing supply chain risks related to health, safety, and sustainability for over two decades. The company boasts a global presence with 12 offices, over 750 employees, and a network extending to more than 130 countries.

“Our partnership with EQT propels Avetta into a new era of innovation and growth, reinforcing our dedication to fostering safer, more sustainable workplaces across our global clients and suppliers,” remarked Arshad Matin, CEO of Avetta.

“This transition is not just a significant milestone for Avetta but for the supply chain risk management (SCRM) industry at large. With the support of EQT, we are poised to enhance our product suite and operational reach further, as demonstrated by `Ask Ava,’ our pioneering generative AI risk assistant. As we embrace this exciting phase of expansion, we extend our deepest gratitude to WCAS for their unwavering support and partnership over the past six years.”

The acquisition comes at a time when global supply chains are grappling with increased complexity due to globalization, digitization, and stringent safety and sustainability standards. Avetta’s cloud-based solutions are designed to enhance resilience in these intricate supply networks.

EQT plans to bolster Avetta’s growth trajectory by introducing new products, adopting AI and automation, and expanding globally. This strategic move is expected to enrich Avetta’s offerings to its clients and suppliers, addressing the pressing challenges in global supply chains.

The investment from EQT X fund through this transaction is projected to be between 35-40 percent of the fund’s actual size, subject to regulatory approvals. The deal is anticipated to close in the upcoming months, with financial details remaining undisclosed. Goldman Sachs & Co. LLC and Citi provided financial advisory services to Avetta and EQT, respectively, while Kirkland & Ellis and Ropes & Gray offered legal counsel.

Christopher Hooper, General Partner at WCAS, stated, “WCAS is proud to have helped guide Avetta’s strategic evolution and achievement of substantial growth, both organically and through strategic acquisitions. Avetta is an excellent example of how WCAS supports accelerating value creation and driving technology businesses to the next level. With our co-investors TCV and Norwest Ventures Partners (NVP), we’re proud to have helped transform Avetta into a leading network for managing third-party supplier risk across a broad array of risk types including safety, business risk, ESG and workforce management.”

“Critical to this transformation has been the assembly of a world-class management team, led by Arshad Matin. Their leadership has been pivotal in Avetta’s enterprise scaling and innovation,” said Mr. Hooper.

“We are confident in Avetta’s continued success under EQT’s ownership, assured that the foundation we’ve built will continue to thrive and set new benchmarks.”

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