Private equity firm EQT 
EQT 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.
