Private equity firm EQT agrees to buy software maker Avetta from Welsh Carson (updated)

Amerisafe

02/04/2024 21:24

(Adds comments from interview in paragraph 4)
    By Priyanka  G and Milana Vinn
       April 2 (Reuters) - Private equity firm EQT  EQTAB.ST 
said on Tuesday it has agreed to buy compliance software maker
Avetta from Welsh, Carson, Anderson & Stowe (WCAS). 
    Reuters reported on Monday citing sources that EQT had
prevailed in a sale process run by Avetta's owner WCAS, valuing
the company at roughly $3 billion, including debt.
    The Stockholm, Sweden-based investment firm is buying Avetta
through its EQT X fund.    
    "There's a bifurcation between the Avetta-type companies,
which are trading, and the lower-quality companies we're seeing
that have very dragged-out processes with a lot of re-trading,
stops and starts, or they don't trade all and end up with failed
processes - whereas three years ago everything was trading and
trading at huge prices," said Arvindh Kumar, partner and co-head
of technology at EQT, in an interview. 
    The sale comes at a time when global supply chains have seen
significant disruptions due to geopolitical turmoil and natural
disasters. Major corporations are ramping up spending and
looking to create resilient supply chains in a bid to minimize
risk. 
    Avetta's software helps companies monitor their supply
chains. Founded in 2003, the Lehi, Utah-based firm's offerings
are used in more than 120 counties, according to its website.
    Welsh Carson acquired a majority stake in Avetta in 2018 for
an undisclosed amount. A year later, Welsh Carson merged Avetta
with BROWZ, another software vendor focused on supply chain risk
management.

 (Reporting by Priyanka.G in Bengaluru; Editing by Krishna
Chandra Eluri and David Gregorio)
 ((Priyanka.G@thomsonreuters.com;))