LONDON; Apax Global Alpha (AGA), the closed-ended investment company providing access to the Apax Private Equity Funds, today announced that it expects to invest approximately €29m in Veriforce on a look-through basis.
The Apax XI Fund (Apax XI), in which AGA is a limited partner, has reached a definitive agreement to acquire a controlling stake in Veriforce, a global provider of supply chain risk management solutions (SCRM).
The transaction is subject to customary regulatory approvals.
Headquartered in the US, Veriforce is one of the world’s largest providers of integrated supply chain risk management solutions, serving a multitude of end markets, with hubs in the US, Canada and UK.
The Company’s solutions focus on verifying the services offered by contractors to hiring clients. This allows organisations to drive safety and compliance throughout all aspects of their supply chains.
Today, Veriforce operates in more than 140 countries. Since 2018, Veriforce’s network has grown from approximately 115 clients and 9,500 contractors to over 1,300 clients and more than 90,000 contractors today.
To support this expansion, Veriforce’s workforce has more than tripled to over 530 employees.
Frank Ehmer, Partner, Apax, commented: “The SCRM sector is still a relatively new industry and it is highly fragmented. Veriforce has a strong reputation and market position in the US and we see an opportunity to partner with the Veriforce team to drive further organic growth, while continuing to scale the business internationally and into new verticals.”
Anders Meyerhoff, Partner, Apax, added: “Apax has significant experience in the SCRM sector, particularly given current Apax Fund investments in Alcumus and EcoOnline. It is an industry that has seen significant growth, driven by increasingly complex regulatory pressures and more demanding commercial requirements. We are excited by the industry outlook and are looking forward to supporting the next phase of Veriforce’s growth.”
Note that AGA’s expected investment in Veriforce is calculated based on the look-through position of Apax XI’s overall investment in Veriforce1 and is translated based on the latest exchange rates available where applicable.
AGA, whose shares are listed on the London Stock Exchange, provides investors with access to a diversified portfolio of private equity funds advised by Apax as well as a focused portfolio of mostly debt investments. In June 2022, AGA made a commitment of c. $700m to Apax XI.