Spectrum Equity pays C$60m for Verafin minority stake


venus flytrap securityGrowth equity firm Spectrum Equity has picked up a minority stake in fraud detection and anti-money laundering (FRAML) business Verafin for C$60m.

The company’s software combines customer behaviour risk analytics with case management and regulatory reporting software.

Spectrum managing director Chris Mitchell said, “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.

“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 [CEO Jamie King] and the rest of the management team to continue driving Verafin’s rapid growth and building a world class company.”

Previous Spectrum investments include World-Check, RiskMetrics Group and Passport Health.

The firm has raised $4.7bn across six funds since it was founded in 1994.

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