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Veritas Capital

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Veritas Capital Fund Management, L.L.C.
Company typePrivate
Founded1992; 32 years ago (1992)
FoundersRobert B. McKeon
Headquarters
9 West 57th Street, New York City
,
U.S.
Key people
Services
AUM> US$45 billion (2022)
Number of employees
131 (2023)
Websiteveritascapital.com
Footnotes / references
[1][2][3][4][5]

Veritas Capital Fund Management, L.L.C. is a New York–based private-equity firm founded in 1992 that invests in companies providing critical products and services, primarily technology-enabled products and services, to government and commercial customers worldwide.[6][7][8] The firm's first fund closed in 1998.[9] They closed an eighth flagship fund in 2022; in all, Veritas has approximately $45 billion of assets under management.[3][4][5] Veritas is led by Ramzi Musallam, the firm's Chief Executive Officer and Managing Partner.[10]

History

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Veritas Capital was founded in 1992 and raised its first fund in 1998.[6][9] The firm invested exclusively in companies that support the government, government-influenced markets, and commercial customers, specifically in certain sectors, such as aerospace, defense, communications, education, energy, government services, healthcare, national security, and software.[11] Since 1998, it has raised seven funds with a total value of over $14 billion.[6] During this time, it originated and managed over 90 acquisitions.[12]

Military and defense industry

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Veritas made a major play in national security with the acquisition of Raytheon Aerospace in June 2001 and Flight International in December 2002. It merged the two companies to form Vertex Aerospace LLC,[13] and sold Vertex to L3 Technologies in October 2003.[14]

Veritas acquired several units of DynCorp from CSC in 2004 to create DynCorp International LLC.[15] It launched an IPO on the New York Stock Exchange in 2006, offering 25 million shares and retaining shareholder control.[16] The firm sold DynCorp International to Cerberus Capital Management in 2010.

In 2005 it acquired MZM Corporation and changed MZM's name to Athena Innovative Solutions[13] before selling it to CACI in 2007.[17]

Veritas acquired the Enterprise Integration Group business unit of Lockheed Martin in 2010 and changed its name to the SI Organization. SI acquired PhaseOne Communications in 2012, Applied Communication Sciences in 2013 and QinetiQ North America's services business in 2014, after which it rebranded itself Vencore.[18]

In 2017, Veritas acquired the government IT services division of Harris Corporation,[19] and renamed it as Peraton.[20] Peraton primarily contracts with the US and Canadian military.[21]

In 2021, Veritas acquired the federal IT and mission support business of Northrop Grumman for $3.4 billion in cash. Veritas placed this purchase in its Peraton subsidiary.[22][23]

In May 2021, Perspecta was acquired by Veritas for $7.1 billion and also placed under Peraton.[24]

In September 2021, Peraton's Systems Engineering Sector (SES) was divested from Peraton to the Veritas's Vantage fund under the name Arcfield.[25]

Integrated information technology

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By 2019 Veritas' portfolio included Abaco Systems, Inc., Alion Science and Technology Corporation, APTIM Corp., athenahealth, Inc., Cambium Learning Group, Inc., Cotiviti, Inc., Guidehouse, and OnSolve, LLC.[13]

On or about May 25, 2021, Cubic Corporation (NYSE: CUB) announced the completion of its sale to Veritas Capital and Evergreen Coast Capital Corporation in a transaction valued at approximately $3.0 billion, including the assumption of debt.[26]

On August 6, 2024, NCR Voyix publicly announced that it had reached an agreement with Veritas Capital to sell Digital banking sector of NCR Voyix for $2.45 billion.[27] The transaction was completed on September 30; the resulting company was named Candescent.[28]

Health care data business

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In 2012 Veritas acquired the "health-care data business" of Thomson Reuters for $1.25 billion; the business is now called Truven Health Analytics.[7] In 2016, it sold Truven Health Analytics Inc. to IBM for $2.6 billion.[29]

On April 25, 2016, the firm acquired the healthcare services business unit from Verisk Analytics, Inc. for $820 million.[30] The deal closed on June 1, 2016, and the company was renamed “Verscend Technologies, Inc.”[31]

On April 2, 2018, the firm announced plans to buy The Value-Based Care Solutions Group from GE Healthcare for $1.05 billion.[32] The deal closed on July 11, 2018.[33] On October 9, 2018, it announced it was rebranding The Value-Based Care Solutions Group to Virence Health Technologies.[34]

On June 19, 2018, Veritas-backed Verscend acquired Cotiviti Holdings, Inc., a provider of payment accuracy and analytics-driven solutions[buzzword] focused primarily on the healthcare industry, for $4.9 billion. The deal closed on August 27, 2018; the combined private company would operate under the Cotiviti name.[35][36]

On November 12, 2018, the firm announced it had entered in to a definitive agreement to acquire Watertown, Massachusetts–based athenahealth for $5.7 billion through a partnership with Evergreen Coast Capital., with plans to merge athenahealth with Virence Health Technologies; the joint company would operate under the athenahealth brand.[37] The acquisition closed on February 11, 2019.[38] In June 2019, the firm received “PE Deal of the Year” for its acquisition of athenahealth by the publication The Deal.[39]

On March 10, 2020, DXC Technology announced it had reached an agreement with Veritas to purchase its U.S. State and Local Health and Human Services business for $5.0 billion.[40]

References

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  1. ^ "Veritas Capital Fund Management LLC - Assets, Funds, Holdings". AUM 13F. Retrieved November 13, 2019.
  2. ^ "The Veritas team". Retrieved 2023-10-27.
  3. ^ a b "Veritas Capital". www.veritascapital.com. Retrieved 2022-06-28.
  4. ^ a b "Veritas Capital Closes Eighth Flagship Fund with $10.65 Billion of Commitments". Businesswire (Press release). 12 October 2022. Retrieved 2022-10-13.
  5. ^ a b c Company Overview of Veritas Capital, Bloomberg, retrieved May 4, 2017
  6. ^ a b David Benoit (September 13, 2012). "Robert McKeon of Veritas Capital Dies". Wall Street Journal. Retrieved February 6, 2017.
  7. ^ Daniel Edward Rosen; Patrick Clark (September 14, 2012), Veritas Capital Founder Robert B. McKeon Dead in Apparent Suicide, Observer, retrieved February 6, 2017
  8. ^ a b Benjamin Horney (February 15, 2017), Veritas Capital Secures $3.55B For Middle-Market Tech Fund, Law360
  9. ^ Company Overview of Veritas Capital - Ramzi M. Musallam, Bloomberg, retrieved March 19, 2017
  10. ^ About, Veritas Capital, retrieved February 6, 2017
  11. ^ About Veritas, Bloomberg, retrieved March 19, 2017
  12. ^ a b c Portfolios, Veritas Capital, nd, retrieved November 9, 2019
  13. ^ "L-3 to Buy Vertex for $650 Million". The New York Times. New York. 23 October 2003. Retrieved 18 February 2017.
  14. ^ Merle, Renae (14 December 2004). "Computer Sciences Sells DynCorp Units". The Washington Post. Washington, DC. Retrieved 19 February 2017.
  15. ^ Ogg, Jon (30 April 2006). "IPO Preview: DynCorp (DCP)". Seeking Alpha. Retrieved 19 February 2017.
  16. ^ Charles R. Babcock (August 17, 2005), "Defense Contractor Sold to N.Y. Firm", The Washington Post, retrieved February 6, 2017
  17. ^ Wakeman, Nick (30 April 2005). "Acquisitions, changes drive new name for SI Org". Washington Technology. 1105 Media. Retrieved 19 February 2017.
  18. ^ "Harris Corp to sell government IT services unit for $690 million". Reuters. 27 January 2017.
  19. ^ "Peraton is the New Name of Former Harris Corporation Government Services Business". Businesswire. 28 July 2017. Retrieved 26 February 2021.
  20. ^ "Peraton Named 'Best For Vets' Employer by Military Times". Yahoo! Money. 19 August 2020. Archived from the original on 21 August 2020.
  21. ^ Insinna, Valerie (December 8, 2020). "Northrop sells IT business to Veritas Capital for $3.4B". Defense News. Retrieved May 22, 2021.
  22. ^ Lake, Sidney (February 1, 2021). "Peraton closes on $3.4B cash purchase of Northrop Grumman biz". Virginia Business. Retrieved May 22, 2021.
  23. ^ "Veritas Capital Completes Acquisition of Perspecta" (Press release). PR Newswire. May 6, 2021.
  24. ^ "Arcfield Taps Kevin Kelly as CEO, Debuts New Company Name". 15 December 2021.
  25. ^ "Cubic Announces Completion of Acquisition By Veritas Capital and Evergreen Coast Capital". cubic.com (Press release). May 25, 2021. Retrieved 2023-03-29.
  26. ^ "NCR Voyix Enters Definitive Agreement to Sell Digital Banking to Veritas Capital for $2.45 Billion Purchase Price" (Press release). NCR Voyix. 2024-08-06. Retrieved 2024-08-06.
  27. ^ "NCR Voyix Completes Sale of Digital Banking Business" (Press release). NCR Voyix. 2024-09-30. Retrieved 2024-10-09.
  28. ^ Anthony Noto (December 20, 2016), "Veritas Capital is raising $3 billion for its new fund", New York Business Journal, retrieved February 6, 2017
  29. ^ "Verisk Analytics, Inc., Signs Definitive Agreement to Sell Its Healthcare Services Business to Veritas Capital for $820 Million". MarketWatch. April 25, 2016.
  30. ^ "Verisk Health Announces Rebrand to Verscend Technologies". BusinessWire. August 26, 2016.
  31. ^ LaVito, Angelica (2018-04-02). "Veritas Capital to acquire a GE Healthcare unit for $1 billion". CNBC. Retrieved 2018-04-03.
  32. ^ "Veritas Capital Completes Acquisition of Revenue-Cycle, Ambulatory Care and Workforce Management Software Units from GE Healthcare for $1 Billion". Business Wire. Retrieved 2019-04-16.
  33. ^ "Former GE Healthcare Value-Based Care Solutions Group Rebrands as Virence Health Technologies". Retrieved 2019-04-16.
  34. ^ "Veritas Capital-Backed Verscend to Acquire Cotiviti for About $4.16 Billion". The Wall Street Journal. July 19, 2018.
  35. ^ "Former GE Healthcare Value-Based Care Solutions Group Rebrands as Virence Health Technologies". Bloomberg. October 9, 2018.
  36. ^ "athenahealth Enters Definitive Agreement to be Acquired by Veritas Capital For $135 Per Share in Cash". Retrieved 2019-04-16.
  37. ^ "Veritas Capital Completes Acquisition of athenahealth". Business Wire. Retrieved 2019-04-16.
  38. ^ "United States : Harvey Eisenberg Named PE Dealmaker of the Year and Weil Recognized for Advising on PE Deal of the Year at The Deal Awards 2019". MarketWatch. June 24, 2019.
  39. ^ "DXC Technology to Sell U.S. State and Local Health and Human Services Business to Veritas Capital for $5.0 Billion". Business Wire. Retrieved March 10, 2020.
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