Apax Global Alpha to invest EUR 29m in Veriforce

Apax Global Alpha (AGA) announced an expected investment of €29m in supply chain risk management specialist Veriforce on Thursday.

The London-listed firm said the investment was part of a larger transaction in which the Apax XI Fund, where AGA is a limited partner, had reached a definitive agreement to acquire a controlling stake in Veriforce.

It said the deal was pending customary regulatory approvals.

Veriforce, based in the United States, is one of the world's largest providers of integrated supply chain risk management solutions, with a significant presence in the US, Canada, and the UK.

Its services were designed to enhance safety and compliance within supply chains by verifying contractor services for hiring organisations.

Veriforce operates in more than 140 countries, and has seen substantial growth since 2018, expanding its client base from 115 to over 1,300 and increasing its contractor network from 9,500 to more than 90,000.

The company’s workforce had also grown significantly, now numbering over 530 employees.

“The SCRM sector is still a relatively new industry and it is highly fragmented,” said Apax partner Frank Ehmer.

“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.”

AGA said its investment in Veriforce reflected its broader strategy of providing shareholders with access to a diversified portfolio of private equity funds managed by Apax, along with a targeted portfolio of debt investments.

At 1147 BST, shares in Apax Global Alpha were up 0.77% at 149.14p.

Reporting by Josh White for Sharecast.com.