Verisys Corporation (“Verisys” or the “Company”), a leading provider of technology solutions and primary-source data on healthcare professionals and businesses, announced today that Spectrum Equity, along with Cressey & Company and Verisys CEO John P. Benson, have made a significant growth equity investment in the Company. The investment positions Verisys, which has long been considered the “gold standard” in healthcare provider compliance and risk management data, to accelerate platform and product investment initiatives, and to continue to execute on a highly successful growth strategy.
Verisys addresses the complex requirements facing today’s healthcare industry and enables its clients to maintain regulatory compliance and mitigate legal, financial and reputational risks. Self-funded and profitable since inception, Verisys has established itself as the clear market leader for in-depth, accurate data on adverse actions, exclusions and debarments, as well as licensure status on healthcare providers and entities.
Verisys’ core data offering, Fraud and Abuse Control Information System (“FACIS®”), provides comprehensive data used universally by the largest healthcare providers, payers, pharmacies and background employment screening companies to screen, verify and monitor providers and entities employed throughout a healthcare organization.
With data from more than 3,500 primary sources dating back to 1992, FACIS offers unparalleled value in protecting clients from fines, legal entanglement, financial losses and reputational damage. In recent years, Verisys has further productized its data to deliver market-leading software-as-a-service (SaaS) credentialing solutions CheckMedic® and real-time transactional screening platform ProviderCheck®.
“We are extremely pleased to have Spectrum Equity and Cressey & Company make this strategic investment in the Company,” said Verisys co-founder John P. Benson, who will continue to operate the Company, now as CEO. “We believe we are still in the early stages of the Company's growth opportunity and with their domain expertise and financial resources, Spectrum Equity and Cressey & Company represent a unique set of partners to build on Verisys’ success. We thank co-founder John O’Shaughnessy for his dedication and service to the Company.”
“Verisys is a perfect fit for Spectrum Equity, given our experience backing vertical market leaders in both regulatory compliance information services and healthcare technology sectors," said Adam Margolin, Spectrum Equity. "Verisys is the clear market leader in a mission-critical area of healthcare regulatory compliance, and plays a critical role as gatekeeper in an environment where health care fraud is estimated to represent 10 percent of our $3.35 trillion annual heathcare spend. We look forward to working with John Benson and the rest of Verisys’ management team to capitalize on this opportunity."
Dave Rogero, Cressey & Company added, “The Verisys brand is synonymous with quality, and the Company’s solutions are deeply embedded in many of its customers’ core workflows. Given the company’s meticulous research and depth of coverage, Verisys’ provider data has become an indispensable tool for uncovering and preventing healthcare fraud.”
“Verisys’ data is a ‘must have’ for any company employing healthcare professionals,” added Chris Mitchell, Spectrum Equity. “As the Company continues to roll-out innovative SaaS solutions like CheckMedic and ProviderCheck, we see a massive opportunity to address a broader set of compliance and risk management pain points across an even wider customer footprint.”
In conjunction with the investment, Jeff Haywood, Adam Margolin and Chris Mitchell from Spectrum Equity, and Dave Rogero from Cressey & Company will join Verisys' Board of Directors.
Berkery Noyes acted as financial advisor to Verisys, and TripleTree acted as financial advisor to Spectrum Equity and Cressey & Company on the transaction. Additional terms of the transaction were not disclosed.
Verisys' mission is to serve the healthcare sector with accurate and timely data on persons, professionals and businesses (for contracting, privileging, employment, reimbursement and referral validation). Verisys solutions ensure regulatory compliance and prevent healthcare waste, abuse and fraud. Verisys' products and services include provider data and content, credentialing, primary-source verification services, screening - monitoring and notification services, identity/authentication tied to credentials management and regulatory compliance products and services. Verisys' flagship product, FACIS®, is the gold standard for exclusion screening in the healthcare field and its SaaS credentialing platform, exclusively endorsed by the American Hospital Association, CheckMedic®, represents a breakthrough in credentialing. Verisys is a NCQA certified and URAC accredited Credentials Verification Organization.