Avetta And Browz Merger Creates A Single Solution For The Management Of Supplier Risks
On 14th February 2019, Avetta, a supply chain risk management software provider, and Browz, a contractor safety management provider, announced a merger. Terms of the deal were not disclosed. Based on the size of the Browz business which was operated by around 150 employees and standard valuation metrics, Verdantix estimates the valuation was between $40 million and $58 million. Avetta’s three largest shareholders financed the merger: Welsh, Carson, Anderson & Stowe (WCAS), Technology Crossover Ventures (TCV) and Norwest Venture Partners.
Both Avetta and Browz are veterans in the contractor risk and safety management space. Avetta was founded in 2003 and Browz founded in 2001. The merger creates a combined client base of over 450 firms including BASF, Bosch, Fluor, Mars, Rio Tinto and WSP Parsons Brinckerhoff. Alongside Avetta other major players in this market include Achilles, Hellios, ISN and Veriforce, with a range of leaner competitors such as Appruv, First,Verify, and Onelook Systems.
The need for end-to-end management of contractors has emerged as a distinct category of the supply chain risk management market. The need to manage contractor risks emerged from a sea change in the approach taken by regulators to assigning liability when serious incidents occur. Now typically the hiring client will bear the brunt of responsibility. For example, the Deepwater Horizon operation, while owned by BP, was managed by TransOcean, a contractor. At the end of 2018, the cost to BP stood at $62 billion. To manage contractor risks firms should use third-party suppliers to rigorously prequalify contractors. Third-party providers can then manage documents like certificates of insurance, benchmark contractors based on past performance and provide ongoing risk assessments.
Avetta’s merger with Browz enables the provision of an end-to-end solution. Scott Spencer, VP Global Sales at Avetta told Verdantix at our annual HSE Europe Summit that the merger will enable synergies to be leveraged between the two platforms through providing contractor safety management and supply chain risk management in a single offering to clients such as CRH. To learn more about the management of contractor risks read the Verdantix report Best Practices For Contractor Safety Management.