Key Takeaways
- • EQT Private Equity's EQT X fund has agreed to acquire Avetta from Welsh, Carson, Anderson & Stowe (WCAS), with the deal valued at approximately $3 billion including debt, representing a 24x multiple on projected 2024 EBITDA of $125 million.
- • Avetta operates the world's largest supply chain risk management (SCRM) network, serving over 500 hiring clients and 130,000 suppliers across more than 130 countries with a global workforce of 750+ employees across 12 offices.
- • The platform addresses growing market demand for supply chain resilience solutions driven by increased globalization, digitization, and heightened safety, compliance, and sustainability requirements across major industries.
- • EQT intends to leverage its global footprint, digital expertise, and sustainability credentials to support Avetta's continued growth and innovation in the cloud-based SCRM software market.
- • Ropes & Gray advised EQT Private Equity on the transaction, with the deal announced on April 2, 2024.
Summary
EQT Private Equity announced on April 2, 2024, that its EQT X fund has agreed to acquire Avetta, a leading supply chain risk management software provider, from long-standing owner Welsh, Carson, Anderson & Stowe (WCAS). The transaction values Avetta at approximately $3 billion including debt, equating to roughly 24 times the company's projected 2024 EBITDA of $125 million—a valuation reflecting strong investor confidence in the SCRM software sector and Avetta's market position.
Avetta has established itself as the world's largest supply chain risk management network over more than two decades of operation. The company operates a cloud-based SaaS platform with a global footprint encompassing 12 offices and more than 750 employees serving over 500 hiring clients and 130,000 contractors across more than 130 countries. The platform enables organizations to manage supply chain risks across health, safety, sustainability, worker competency, and performance metrics, helping clients reduce accidents, improve compliance rates, and achieve operational and ethical excellence.
The acquisition is strategically timed to capture growing demand for supply chain resilience solutions. Global supply chains face mounting complexity from accelerating globalization and digitization, coupled with increasingly stringent safety, compliance, and sustainability requirements across major industries. As an established, cloud-based platform with decades of innovation and proven global scale, Avetta is well-positioned to address these structural market headwinds, enabling clients to enhance supply chain resilience and operational performance.
EQT has committed to supporting Avetta's ongoing growth and innovation journey, leveraging its institutional expertise in digital transformation and sustainability initiatives. The firm intends to apply its global platform capabilities to accelerate Avetta's market expansion. Ropes & Gray advised EQT Private Equity on the transaction.
Avetta has established itself as the world's largest supply chain risk management network over more than two decades of operation. The company operates a cloud-based SaaS platform with a global footprint encompassing 12 offices and more than 750 employees serving over 500 hiring clients and 130,000 contractors across more than 130 countries. The platform enables organizations to manage supply chain risks across health, safety, sustainability, worker competency, and performance metrics, helping clients reduce accidents, improve compliance rates, and achieve operational and ethical excellence.
The acquisition is strategically timed to capture growing demand for supply chain resilience solutions. Global supply chains face mounting complexity from accelerating globalization and digitization, coupled with increasingly stringent safety, compliance, and sustainability requirements across major industries. As an established, cloud-based platform with decades of innovation and proven global scale, Avetta is well-positioned to address these structural market headwinds, enabling clients to enhance supply chain resilience and operational performance.
EQT has committed to supporting Avetta's ongoing growth and innovation journey, leveraging its institutional expertise in digital transformation and sustainability initiatives. The firm intends to apply its global platform capabilities to accelerate Avetta's market expansion. Ropes & Gray advised EQT Private Equity on the transaction.
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