Australian cloud-based workforce management software provider Pegasus has struck a deal to be acquired by supply chain risk management software vendor Avetta, with the local company set to become the Australian launch-pad of its US-based buyer.
Founded in the late ‘80s and based in Newcastle, NSW, Pegasus was originally created as a labour-hire and safety training company for mines in the Hunter Valley. The company subsequently developed software to help manage worker inductions, before pivoting entirely to become a software-as-a-service (SaaS) company.
Today, the independent software vendor (ISV) provides worker competency management, induction and learning management, supplier prequalification, site access and asset management to a diverse range of industries, including construction, energy, healthcare, government, manufacturing and mining.
Pegasus employs 140 staff across Australia and New Zealand and claims channel partners in Germany, England and Scotland, with its software products and services used by more than 100 hiring clients, including BHP, Lendlease and Otis, to manage 3.5 million workers employed by 70,000 suppliers.
In January last year, the company announced it had secured a significant growth investment from Accel-KKR, a leading Silicon Valley technology-focused investment firm.
Avetta, which is headquartered in Utah, United States, provides a configurable SaaS-based solution that assists organisations to manage supply chain risk across a variety of disciplines.
The deal will see Pegasus become the base of operations for Avetta in Australia. It is hoped the combination of the two companies will help accelerate Avetta’s global growth strategy and is expected to give birth to the largest provider of supply chain risk management and compliance solutions, with nearly 170,000 suppliers and 4 million managed workers.
Pegasus CEO Adam Boyle will join Avetta and continue to lead the Pegasus business while helping Avetta expand further in the Australia and New Zealand (A/NZ) market, with both Boyle and Accel-KKR set to become equity investors in Avetta.
“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 Avetta CEO and president Arshad Matin. “The Australian government and businesses have led the way in monitoring contractor safety and compliance programs.
“We are excited to add this pioneering software innovator and take those insights and capabilities worldwide,” he added.
For Boyle, Pegasus and Avetta both share a vision to ensure workforces are competent and safe, and risk is being managed globally. As such, Pegasus’ worker competency expertise complements Avetta’s world-class supply chain risk management product, and is fit to benefit the local company’s people, clients and contractors thanks to the new access to a greater international network the deal will offer.
“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 Boyle. “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,” he added.
The acquisition is expected to close after regulatory approvals. Until that time, both companies will continue to operate independently.