PriceSensitive

Veriluma spends $675K on healthcare client base

Technology
ASX:VRI
06 October 2019 21:38 (AEST)

Veriluma has entered an agreement to acquire Prometheus Information.

The acquisition is for a $0.6 million cash and share consideration and a performance cash payment of up to $0.075 million.

Prometheus is a Canberra-based, business and analytical services business. It primarily works in the health insurance sector in relation to the identification of fraud, waste and claim abuse by providers and members.

Prometheus has 21 clients and annual revenues of approximately $670,000 – both of which Veriluma aims to tap into.

Veriluma is an Australian software company who has developed an advanced algorithmic approach to give decision makers decisive insight.

Despite its software having wide application across multiple industries such as banking, insurance, defence, national security, legal and health, it sees Prometheus as a complementary partner.

“We see the Prometheus acquisition as a complementary partner to the Veriluma offering. Our combined team will work together on the same problems to help deliver better solutions to our clients and partners,” CEO Elizabeth Whitelock said.

The acquisition gives Veriluma the opportunity to leverage its software and Prometheus’ fraud detection and identification products in the insurance industry.

“Deloitte research shows insurer spending on cognitive and artificial intelligence is expected to reach $1.4 billion globally by 2021,” Elizabeth said.

“Combining Veriluma’s AI with the Prometheus analytical platform, will create compelling benefits and insights not only for health insurers but also for clients and prospects facing similar challenges in other industries,” she added.

The company has acknowledged that having a competitive advantage in the insurance industry is no longer necessarily driven by products, but by providing a quality customer experience.

Veriluma’s share price is up 9.52 per cent today, trading at 4.6 cents apiece as at 4:10 pm AEST.

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