Mississippian Colby Lane guides small company into global juggernaut

• Mississippi led Veriforce, one of the world’s largest supply chain risk management firms has been acquired by Apax Partners.

A quietly announced mega merger took place on August 28. 

Apax Partners LLP, a UK-based private equity firm, announced an agreement to acquire a controlling stake in Veriforce from Thoma Bravo, an investment firm focused on software and technology-enabled services.

Mississippian Colby Lane has led Veriforce from humble beginnings to becoming one of the world’s largest supply chain risk management (SCRM) network.

Veriforce provides a service to a litany of high hazard industries — from oil and gas to pharmaceuticals, from construction to industrial manufacturing — by vetting contractors across the entire supply chain for safety and regulatory compliance.

The company prides itself as “the supply chain risk management solution that gets workers home safe.”

The Apax acquisition of Veriforce is dependent on regulatory approvals. Lane is expected to remain on as CEO of Veriforce.

“The SCRM sector is still a relatively new industry and it’s highly fragmented,” said Frank Ehmer, a partner with Apax.

SCRM involves identifying, assessing, and mitigating risks within a company’s supply chain to guarantee continuity and curtail disruptions.

“Veriforce has a strong reputation and market position in the U.S., and we see an opportunity to partner with Colby and the Veriforce team to drive further organic growth, while continuing to scale the business internationally and into new verticals,” Ehmer added.

Apax has significant experience in the SCRM sector, particularly given current Apax Fund investments in Alcumus and EcoOnline, said Anders Meyerhoff, also a partner with Apax. 

“It’s an industry that’s seen significant growth, driven by increasingly complex regulatory pressures and more demanding commercial requirements,” Meyerhoff said. “We’re excited by the industry outlook and are looking forward to supporting the next phase of Veriforce’s growth.”

About Colby Lane and Veriforce

Led by Lane, Veriforce has grown strategically and swiftly through organic initiatives and mergers and acquisitions. It’s now among the world’s largest providers of integrated SCRM solutions in more than 140 countries, with hubs in the U.S., Canada, and the U.K. 

Lane graduated from Millsaps College with an economics degree in 1996. After graduating from Harvard Law School in 1999, he joined WilmerHale in Washington D.C. as an associate. Four years later, he was an Assistant U.S. Attorney before Governor Haley Barbour recruited him to serve as Deputy Chief of Staff. 

In 2013, Lane returned to school to earn an MBA from Stanford. 

After spending a year as a principal for Eagle Ridge Growth Partners, Lane became CEO of PEC Safety, acquiring it through a surge fund. 

Thoma Bravo acquired PEC Safety in December 2018 and helped expand PEC’s core capabilities, deepen into other verticals, while broadening PEC’s software and content offerings.

In May 2019, PEC Safety and Veriforce merged, with Lane becoming CEO of Veriforce. The combined organization championed a unified mission of reducing risk in hazardous work environments for clients running the gamut from oil and gas, renewable energy, pharmaceutical, manufacturing, chemicals, construction, to utilities, aggregates, environment services and transportation. 

The all-inclusive platform resulting from the alliance offered end-to-end solutions, from prequalification to contractor management, safety training and compliance, bidding farewell to the outdated silos of supply chain safety and compliance. 

Veriforce expanded its contractor network across multiple sectors and geographies. Its network grew from 115 clients and 9,500 contractors to more than 1,300 clients and 90,000 contractors. To support the expansion, Veriforce’s workforce more than tripled to 530 employees.

“Thoma Bravo is proud to have helped guide Veriforce’s strategic evolution over the past five years, while also keeping the company laser-focused on its mission of getting workers home safely,” said Hudson Smith, a partner with Thoma Bravo. “Five years ago, we started with a business with two products focused primarily on one industry and transformed it to a business with greater than ten products focused on a broad range of industries across the globe. We also supported a multi-year research and development project to build the VeriforceOne technology platform that now provides customers with best-in-class features to manage their supply chains.”

George Jaber, a principal with Thoma Bravo, said over the course of their ownership, the company grew revenue six times. 

“We’ve worked closely with Colby and the entire Veriforce management team to build Veriforce into a global, world-class platform, across all industries and all geographies,” he said. “We’re excited for Veriforce’s continued success in its next chapter with Apax.”

The Bottom Line  

Overall, the Apax acquisition is predicted to bolster Veriforce’s market position and drive revolution in the SCRM sector. 

Key takeaways from the deal include:

• Apax Funds plans to drive further organic growth for Veriforce, scaling the business internationally and into new verticals, which should lead to an extended market presence and added competition in the SCRM sector.
• With Apax’s expertise in the SCRM ecosystem, Veriforce will continue to deliver best-in-class solutions for its clients and contractors, resulting in improved safety and compliance across myriad industries. 
• Because the SCRM sector remains relatively new and highly fragmented, Veriforce’s stellar reputation and market position in the U.S. could facilitate the consolidation of the market while setting higher standards for safety and compliance.
• Because the industry has experienced noteworthy growth driven by increasingly complex regulatory pressures and more challenging commercial requirements, Veriforce is well-positioned to gain from these challenges and navigate opportunities presented. 

“Thoma Bravo has been an incredible partner,” said Lane. “Together, we’ve led Veriforce to exponential growth and market expansion, becoming a truly global player in the SCRM space. We’re beyond excited to partner with the Apax team going forward. With their experience in the SCRM ecosystem, Apax will be invaluable partners in advancing our global mission to bring (more than five million) workers home safely (from high-hazard jobs). Our team looks forward to continuing to deliver best-in-class solutions for our hiring clients and contractors.”