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

By Priyanka G and Milana Vinn

(Reuters) -Private equity firm 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 Welsh Carson, valuing the company at roughly $3 billion, including debt.

The Stockholm, Sweden-based private equity 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 at 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.

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The deal 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 130 countries, 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.

Goldman Sachs and Kirkland & Ellis advised Avetta on the deal, while Citi and Ropes & Gray advised EQT.

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