Verafin Inc., a local company that offers fraud detection and anti-money laundering (FRAML) software, has announced a $60-million investment by Spectrum Equity, a leading growth equity firm.
Verafin said in a news release this morning, the investment for a substantial minority stake in the company will support Verafin's rapid growth and continued investment in its market-leading Software-as-a-Service (SaaS) platform.
Verafin has a customer base of more than 1,100 financial institutions across North America.
"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."
Chris Mitchell, managing director at Spectrum Equity, said the company has 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.
"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 and the rest of the management team to continue driving Verafin's rapid growth and building a world class company," Mitchell said.
Verafin's financial crime detection software combines customer behaviour risk analytics with easy-to-use case management and regulatory reporting solutions.
Spectrum Equity has been an active investor in software and information services companies including World-Check (acquired by Thomson Reuters), RiskMetrics Group (acquired by MSCI), Seisint (acquired by Lexis Nexis), Passport Health (acquired by Experian), iPay Technologies (acquired by Jack Henry), and Mortgagebot (acquired by Davis & Henderson).
Founded in 1994 with offices in Boston and Menlo Park, Spectrum Equity has raised $4.7 billion in capital across six funds.