Verafin, a provider of fraud detection and anti-money laundering software, has received a C$60 million investment by Spectrum Equity.
Spectrum will receive a substantial minority stake in the company in return for its investment which will be used to support Verafin’s rapid growth and continued investment in its Software-as-a-Service platform. RBC Capital Markets acted as exclusive placement agent for the financing.
Verafin is a provider of fraud detection and anti-money laundering (FRAML) software. The company has a customer base of over 1,100 financial institutions across North America. Utilizing advanced behavior-based analytics that help financial institutions prevent fraud and meet BSA, USA PATRIOT Act, and FACTA compliance requirements, Verafin is the exclusive provider of fraud detection and BSA/AML software for the California Bankers Association, Florida Bankers Association, Massachusetts Bankers Association, Illinois Bankers Association and the Credit Union National Association. Verafin maintains industry endorsements in 44 states across the US. The company was founded in 2003 by Jamie King, Raymond Pretty and Brendan Brothers and is headquartered in St. John’s, NL (www.verafin.com).
“We have long been impressed by Verafin’s commitment to developing innovative risk analytics and to harnessing these efforts in a solution that is both state of the art and easy to deploy,” said Chris Mitchell, Managing Director at Spectrum Equity. “Large and small financial institutions alike are converging on Verafin’s FRAML solutions as the optimal way to manage financial risk and to comply with regulation, and we are thrilled to be partnering with Jamie King and the rest of the management team to continue driving Verafin’s rapid growth and building a world class company.”
“Financial institutions are facing ever increasing fraud threats and compliance mandates from regulators, and Verafin is committed to providing our customers with the best software solutions to allow them to effectively fight financial crime,” said Jamie King, CEO of Verafin. “Spectrum brings a wealth of experience working with other high-growth technology businesses of a similar profile to Verafin, and we are excited to welcome them to our team.”
Spectrum Equity invests in growth companies in the information industry with particular interest in internet and digital media; communications, media and entertainment; and software and information. Spectrum Equity has raised $4.7 billion in capital across six funds. The firm was founded in 1994 and has offices in Boston and Menlo Park (www.spectrumequity.com).
© 2014 PEPD • Private Equity’s Leading News Magazine • 5-16-14
