Verity Solutions, a Kirkland, Wash.-based startup that sells drug pricing software, was snapped up by Express Scripts, a large pharmacy benefit manager that is part of health insurance giant Cigna. Financial details of the deal were not disclosed.
Verity helps healthcare providers such as pharmacies and hospitals take advantage of a federal program called 340B that reduces the costs of drugs for eligible organizations that serve vulnerable patient populations. Express Scripts plans to use the acquisition to expand its range of 340B services, and Verity will continue to operate as a stand-alone business.
Verity’s investors included Bellevue, Wash.-based venture capital firm Ignition Partners as well as OVP Venture Partners and PineBridge Investments, according to PitchBook. Ignition was also an early backer of DocuSign, Cloudera and Docker.
“Five years ago George Puckett and the team at Verity Solutions set out to dramatically improve the 340B offerings available in the market,” Richard Fade, a partner at Ignition Partners, said in a statement. “Verity Solutions’ cloud-based platform easily handles the needs of a wide range of customers and enables the creation of new services.”
Verity’s leadership team includes CEO George Puckett, CTO Mark Cassidy and CFO Jon Sortland. Puckett said the company, which has 85 employees and plans to grow beyond 100 by the end of next year, would retain its current leadership and staff.
Verity was part of the pharmacy automation company Talyst until 2015, when Talyst was acquired by investment group Columbia Pacific Advisors and Verity spun out. Founded in 2002, Talyst raised around $45 million prior to being acquired, Puckett said. Talyst was acquired again in 2017 by Swisslog Healthcare.
Puckett has three decades of healthcare experience and was previously a general manager at Talyst.