Norwest Venture Partners is said to put Avetta up for sale

Avetta, a software provider backed by Norwest Venture Partners, is up for sale, two sources said.

William Blair is advising on the process, one of the sources said.

Founded in 2003, Avetta supplies cloud-based risk-management software to businesses in sectors such as oil and gas, chemicals and transportation. Avetta produces $15 million to $20 million of earnings on a cash basis, one of the sources said. The company is expected to sell for $200 million to $250 million, the person said.

The auction has officially started. William Blair reached out to prospective buyers last week, the people said.

In 2013, Norwest Venture Partners invested $35 million in the company, which was then known as PICS Auditing. Norwest acquired a minority stake. The Irvine, California, company changed its name three years later, in 2016, to Avetta, to reflect its evolution and focus on clients’ needs.

Norwest, Palo Alto, California, closed its latest fund on $1.5 billion earlier this month. The firm’s last pool, Norwest Venture Partners XIII, collected $1.2 billion in 2016. Norwest invests in both seed and late-stage companies in consumer, enterprise and healthcare.

The firm has posted several exits this year, including the sales of Stratim, Scan Security, and PCA Skin, PitchBook said. In January, Microsoft acquired Avere Systems, a provider of data storage. Norwest invested in Avere in 2009 as part of a $15 million round, PitchBook said.

Norwest declined comment. Executives for Avetta and William Blair could not be reached for comment.

Action Item: Contact John Herr, Avetta’s CEO, at +1 949-936-4500

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