Apax Global Alpha (AGA) has announced that it expects to invest approximately €29m in Veriforce on a look-through basis as the Apax XI Fund, in which AGA is a limited partner, has announced that it 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.

Who are Veriforce?

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. AGA says that Veriforce’s solutions focus on verifying the services offered by contractors to hiring clients, which allows organisations to drive safety and compliance throughout all aspects of their supply chains.

Veriforce operates in more than 140 countries and, since 2018, its 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.

Comments from Frank Ehmer, Partner, Apax

“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.”

Comments from Anders Meyerhoff, Partner, Apax

“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.”