Global leaders to combine to create largest provider of supply chain risk and worker management solutions
Newcastle, Australia — 7 May 2021 — Pegasus, a leader in worker competency and safety management software, today announced it has reached an agreement to be acquired by US-based Avetta, the leading provider of supply chain risk management software.
Based in Newcastle in Australia, Pegasus products are used by more than 100 clients including Woolworths, Visy, and Lendlease, to manage 3.5 million managed workers employed by 70,000 contractors. Pegasus will become the base of operations for Avetta in Australia.
The combination of the two companies will accelerate Avetta’s global growth strategy and is expected to create the largest global provider of third-party and employee risk management and compliance solutions, encompassing nearly 170,000 suppliers and 4 million managed workers.
Founded in 1989, Pegasus was originally created as a labour hire and safety training company for mines in the Hunter Valley, north of Sydney. Pegasus developed software to help manage worker inductions, before pivoting entirely to become a software-as-a-service company.
Today, the company employs 140 staff across Australia and New Zealand, providing software and services for millions of workers at some of Australia’s largest companies to help them pre-qualify workers, manage site access and assets across a variety of industries.
“Australia has long been a great testing bed of worker safety and competency systems and processes across the supply chain and has been the foundation of our success over the past decade,” said Adam Boyle, Pegasus CEO. “By joining forces with Avetta, we get to bring the hard work the Pegasus team have done in Australia, to companies, contractors and workers all around the world.
“Our worker competency expertise complements Avetta’s world-class supply chain risk management product. Together with Avetta, we’ll be able to bring this work to companies and contractors who need the best safety and competency solutions in their industry.”
Adam will join Avetta and continue to lead the Pegasus business and help Avetta expand further in the ANZ market. Current Pegasus investor, Accel-KKR, will become an equity investor in Avetta.
The events of the past year have highlighted the risks organisations face in the supply chain and with on-site contractors. In order to ensure safer operations, corporations must ensure these essential workers have sufficient training and accreditation to perform their jobs without injury and monitor access to hazardous areas and equipment.
“Together, Avetta and Pegasus will provide our clients the largest and most complete supply chain risk and worker competency management solution in the world,” said Arshad Matin, Avetta CEO and President. “Australian authorities and businesses have led the way in monitoring worker safety and compliance programs in the supply chain. We are excited to add this pioneering software innovator and take those insights and capabilities worldwide.”
Pegasus also has offices in New Zealand, and channel partners in Germany, England and Scotland. The company provides worker competency management, induction and learning management, supplier prequalification, site access, and asset management. It serves a diverse range of industries including, construction, energy, healthcare, government, manufacturing, mining, retail & facilities, transportation, and utilities.
“Accel-KKR first invested in Pegasus in late 2019 with a thesis that supply chain risk management will continue to grow in importance and that while company level compliance is important, visibility into the underlying workforce is vital to risk management,” said Joe Porten, Principal with Accel-KKR and Pegasus board member.
“Adam and the Pegasus team laid out a compelling organic and inorganic growth strategy to capture this growing market and we couldn’t be more pleased with the company’s accomplishments over a very short period. We believe the combination of Avetta and Pegasus is positioned well to capture a disproportionate share of this market and we are pleased to remain invested in the combined company and the next phase of their growth.”
Avetta’s technology platform, Avetta Connect™, helps companies worldwide manage risk, and build resilience in their supply chains – from increasing visibility within the network to ensuring safety and sustainability. The Avetta Marketplace provides suppliers and contractors deep discounts on insurance and safety-related products and services. The company is majority-owned by Welsh Carson Anderson & Stowe with key investments from Technology Crossover Ventures, and Norwest Venture Partners.
The acquisition is expected to close after receipt of regulatory approvals. Until that time, both companies will continue to operate independently.
The leading cloud-based workforce management solution, Pegasus delivers insight, connects networks, and keeps workforces safe on site. With origins in the Hunter Valley mining industry in Australia, we have developed our intuitive software to answer industry challenges about workforce safety, competence, training, and insight. Pegasus connects a competent workforce for over 100 clients, verifying the safety and skills of 3.5 million workers from over 70,000 companies for industry leaders including Woolworths, Lendlease, Visy, Aurizon, and Yancoal. We are trusted to ensure safe and qualified workers for construction, manufacturing, mining, healthcare, retail, facilities management, utilities, ports, and oil and gas. Visit pegasus.net.au for more information.
Avetta offers a configurable SaaS-based solution that assists organizations – both large and small – in managing supply chain risk across a variety of disciplines. Avetta is building the world’s most intelligent supply chain risk management network to advance clients’ safety, resilience and sustainability programs. Avetta leads the world in connecting leading global organizations across industries including telecom, construction materials, manufacturing, facilities management, high tech and energy, with qualified and vetted suppliers and contractors. The company brings unmatched access and visibility to its clients’ supply chain risk management process through its innovative and configurable technology, coupled with highly experienced human knowledge and insight. We contribute to the advancement of our clients’ sustainable growth by protecting supply chains from a wide range of potential risks through trusted contractor prequalification, safety training and monitoring, regulatory compliance, insurance/financial stability and other areas of risk. Avetta serves more than 450 enterprise companies and 100,000 suppliers across 100+ countries https://www.avetta.com/ for more information.
Accel-KKR is a technology-focused investment firm with over $10 billion in capital commitments. The firm focuses on software and tech-enabled businesses, well-positioned for topline and bottom-line growth. At the core of Accel-KKR’s investment strategy is a commitment to developing strong partnerships with the management teams of its portfolio companies and a focus on building value alongside management by leveraging the significant resources available through the Accel-KKR network. Accel-KKR focuses on middle-market companies and provides a broad range of capital solutions including buyout capital, minority growth investments, and credit alternatives. Accel-KKR also invests across a wide range of transaction types including private company recapitalizations, divisional carve-outs and going-private transactions.
About Welsh, Carson, Anderson & Stowe
WCAS is a leading U.S. private equity firm focused on two target industries: technology and healthcare. Since its founding in 1979, the Firm’s strategy has been to partner with outstanding management teams and build value for its investors through a combination of operational improvements, growth initiatives and strategic acquisitions. WCAS has raised and managed funds totaling over $27 billion of committed capital. For more information, please visit www.wcas.com
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“The greatest benefit of working with Pegasus has been the high level of innovation and features available in their packages that aren’t available in other products we have investigated.”
“I’d check Pegasus two to three times a day. It became a single source of truth for workers and safety on the project.”
"Working alone, the data entry was extremely high. I could spend one or two days entering 100 – 200 certs. The system is automatically updated, and I save two full days of work all up - yesterday I was done within 4 hours.”
“The Pegasus platform allows us to standardise the onboarding and induction of contractors nationally, with the robust system underpinning our contractor management process.”
“Pegasus is now used in managing safety, job planning and reviewing the commercial side of things. Pegasus is now integrated with everything we do.”