Veritas Capital
| Company type | Private |
|---|---|
| Industry | Private equity |
| Founded | 1992 |
| Founder | Robert B. McKeon |
| Headquarters | New York , United States |
Key people | Ramzi Musallam (CEO and Managing Partner) |
| Products | Private equity funds, private credit, banking and financial services investments |
Veritas Capital Fund Management, L.L.C. is a private equity firm headquartered in New York, established in 1992 by Robert B. McKeon. The firm concentrates on investing in enterprises that deliver essential, technology-driven products and services to both government and commercial sectors worldwide. Its inaugural fund was finalized in 1998, and as of 2022, Veritas has grown its assets under management to roughly $45 billion. In the same year, the firm successfully closed its eighth flagship fund, securing commitments totaling $10.65 billion.
The company’s investment approach targets industries with substantial market impact, utilizing its proficiency in private equity, private credit, and banking and financial services. Ramzi Musallam serves as CEO and Managing Partner, playing a pivotal role in steering the firm’s strategic direction and expanding its business operations.
By June 2024, Veritas Capital achieved the 46th position on Private Equity International’s PEI 300 ranking of the world’s largest private equity firms, underscoring its strong market presence and competitive standing.
History
Founded in 1992, Veritas Capital launched its first investment fund in 1998. The firm primarily invests in businesses that serve government or government-related markets, with a focus on sectors such as aerospace, defense, communications, education, energy, government services, healthcare, national security, and software. Since inception, Veritas has raised seven funds exceeding $14 billion in total capital and completed over 90 acquisitions.
Military and defense industry
Veritas made notable advancements in national security through key acquisitions such as Raytheon Aerospace in 2001 and Flight International in 2002; these companies were merged into Vertex Aerospace LLC before being sold to L3 Technologies in 2003.
In 2004, Veritas acquired certain DynCorp divisions from CSC to create DynCorp International LLC. The company went public in 2006 while Veritas maintained control until selling DynCorp to Cerberus Capital Management in 2010.
The acquisition of MZM Corporation occurred in 2005; it was subsequently rebranded as Athena Innovative Solutions and sold to CACI in 2007.
In 2010, the firm purchased Lockheed Martin’s Enterprise Integration Group and renamed it SI Organization. This entity expanded through acquisitions including PhaseOne Communications (2012), Applied Communication Sciences (2013), and QinetiQ North America’s services division (2014), eventually rebranding as Vencore.
In 2017, Veritas acquired Harris Corporation’s government IT services segment and renamed it Peraton, which primarily serves military clients in the United States and Canada.
In 2021, Veritas bought Northrop Grumman’s federal IT and mission support unit for $3.4 billion in cash and integrated it into Peraton. That same year saw the acquisition of Perspecta Inc. for $7.1 billion, which was also incorporated under Peraton.
September 2021 marked the divestiture of Peraton’s Systems Engineering Sector to Veritas’s Vantage fund; this business was rebranded as Arcfield.
Integrated information technology
By 2019, Veritas’ portfolio featured companies such as Abaco Systems, Alion Science and Technology, APTIM, athenahealth, Cambium Learning Group, Cotiviti, Guidehouse, and OnSolve.
On May 25, 2021, Cubic Corporation (NYSE: CUB) completed a $3.0 billion transaction selling to Veritas Capital alongside Evergreen Coast Capital Corporation; the deal included debt assumption.
In February 2023, Veritas expanded by acquiring Wood Mackenzie, recognized for its data analytics and insights within the energy and natural resources industries.
On August 6, 2024, NCR Voyix entered an agreement to divest its Digital Banking division to Veritas Capital for $2.45 billion; this deal was finalized on September 30 with the establishment of a new entity named Candescent.
Health care data business
In 2012, Veritas acquired the health-care data division of Thomson Reuters for $1.25 billion, subsequently renaming it Truven Health Analytics. This entity was later sold to IBM in 2016 for $2.6 billion.
On April 25, 2016, Veritas completed the purchase of Verisk Analytics' healthcare services segment for $820 million, which was rebranded as Verscend Technologies.
By April 2018, Veritas revealed its intention to acquire GE Healthcare's Value-Based Care Solutions Group for $1.05 billion. The transaction finalized in July and the unit was rebranded as Virence Health Technologies.
In June 2018, Verscend expanded by acquiring Cotiviti Holdings for $4.9 billion; the merged company continues operations under the Cotiviti name.
On November 12, 2018, Veritas agreed to purchase athenahealth for $5.7 billion alongside Evergreen Coast Capital. The integration with Virence Health Technologies resulted in a combined entity operating under the athenahealth brand. This acquisition was completed in February 2019 and received recognition as “PE Deal of the Year.”
On March 10, 2020, Veritas Capital announced an agreement to acquire DXC Technology’s U.S. State and Local Health and Human Services division for $5.0 billion.