Transaction recapitalizes existing portfolio company Verisma to optimize enhanced opportunities in disclosure management
NewSpring (“the Firm”), a family of private equity strategies, announced today that NewSpring Healthcare, the Firm’s dedicated healthcare strategy, has made an investment into Verisma, an industry leader in healthcare disclosure management technology and services. The transaction creates a successful liquidity event for NewSpring, Blue Heron, legacy investors, and limited partners while allowing Verisma to continue to grow its leadership position in the quickly expanding healthcare information technology industry.
This significant investment affords Verisma an accelerated timeline. They will be able to lower barriers for efficient disclosures and stay ahead of market demands, like increased volume and regulation. The additional access to capital will fast-track its ever-advancing technology platform, enhancing the accuracy of disclosure management.
“Verisma empowers thousands of hospitals and healthcare providers, allowing them to provide superior care without worrying about non-compliance or penalties, all thanks to a cutting-edge, technology-based release of information (ROI) solution. NewSpring’s continued investment furthers our access to the financial, human, and intellectual capital that helped accelerate our growth. We look forward to partnering in the refinement and creation of new, value-adding services to benefit even more healthcare providers.” — Marty McKenna, Verisma CEO
With this recapitalization, structured as a GP-led secondary through a continuation vehicle managed by NewSpring Healthcare, NewSpring is taking advantage of an attractive opportunity to provide a return to existing shareholders while infusing fresh capital into the business with new investors who share the Firm’s strong conviction in Verisma’s potential for continued rapid growth. Triago served as the exclusive Financial Advisor for the transaction.
“When we initially partnered with Verisma, we saw the dire need among healthcare providers for an efficient release of information technology solution capable of handling the explosion of medical information captured by disparate, unconnected systems. This need is still alive today, and we see ample room for the disclosure management space to continue to expand. As a leader in the space, Verisma is well-positioned to take advantage of this industry’s fast growth, and we’re excited about the continued opportunity to help this business introduce new technology innovations that continue driving this industry forward.” — Brian G. Murphy, NewSpring General Partner
As part of the transaction, Verisma’s management team remains consistent as well as the Board of Directors, with NewSpring’s Brian G. Murphy continuing to serve as an active Board member.
Post transaction, Matt Plevelich, NewSpring Principal, also joins the Verisma Board of Directors. “I am looking forward to further working with CEO Marty McKenna and the rest of the Verisma management team to support the company’s ongoing growth as they address the critical demand for patient information.”
Fairmount Partners provided a fairness opinion to Verisma pursuant to the recapitalization transaction.
NewSpring partners with the innovators, makers, and operators of high-performing companies in dynamic industries to catalyze new growth and seize compelling opportunities. The Firm manages approximately $2.5 billion across five distinct strategies covering the spectrum from growth equity and control buyouts to mezzanine debt. Having invested in over 180 companies, NewSpring brings a wealth of knowledge, experience, and resources to take growing companies to the next level and beyond. Partnering with management teams to help develop their businesses into market leaders, NewSpring identifies opportunities and builds relationships using its network of industry leaders and influencers across a wide array of operational areas and industries. To learn more, visit www.newspringcapital.com.
Verisma is a proven partner with decades of experience supporting large, complex healthcare environments around the country. We process millions of medical requests a year and are committed to serving our partners with technology and support solutions that allow them to manage their business and to deliver an exceptional patient experience. From our technology to our people and our partnerships, we believe our purpose is to protect truth and accuracy. Learn more about our disclosure management system at verisma.com.
About Fairmount Partners
Fairmount Partners (www.fairmountpartners.com) is an independent merger and acquisition advisory firm focused on emerging growth and middle-market companies. Fairmount helps its clients complete mergers and acquisitions, raise funds for growth, acquisitions and liquidity, and design and improve their corporate development strategies. Fairmount’s clients include successful entrepreneurs, private equity-sponsored enterprises, and global public companies. Since 2003, Fairmount has completed more than 255 transactions, representing over $14 billion in aggregate value, in 21 countries throughout North and South America, Europe, Asia and Australia. For further information, please contact: