Thomson Reuters recently announced it has acquired Pondera Solutions, the Sacramento-based provider of technology to combat fraud, waste, and abuse in government programs and healthcare. Thomson Reuters declined to disclose financial terms of the deal.
Founded in 2011, Pondera Solutions utilizes advanced analytics, AI, and human intelligence through its core detection system, FraudCaster, to help its clients detect and prevent hundreds of millions of dollars in improper payments in health plans and government programs.
“The future for us is really bright now, and we want to continue to do what we do,” said Pondera founder and CEO Jon Coss. “Thomson Reuters brings us financial strength, sales depth and feet on the street.” Coss added in a statement that the company hopes that by joining Thomson Reuters, Pondera will be able to help more customers with key insights to minimize risk and reduce fraud.
One of the areas the company focuses on is government fraud and abuse which has become increasingly relevant as the COVID-19 outbreak unravels. The virus has caused many businesses to shut down, resulting in layoffs. States have consequently been inundated with unemployment applications, increasing the possibility of unemployment benefits fraud.
Thomson Reuters also provides products and services to government agencies to detect fraud.
"Thomson Reuters and Pondera share a commitment to serve customers with solutions that reduce fraud by individuals targeting government programs," said Steve Rubley, president of the Government business for Thomson Reuters. "Pondera will be a key component to the suite of tools available to government customers that use technology, data and human analysis to support their mission and benefit their communities."
Pondera became profitable in 2016. In 2017 private equity firm Serent Capital invested “eight digits” into Pondera, which saw the company hire more employees. In 2018 it moved into 7,000 square feet of custom, second-floor office space overlooking Lake Natoma.
“We continue to have a strong belief and focus in the government technology market, especially during these times when governments collaborate, communicate, and work to support our communities in a digital world,” Stewart Lynn, Partner at Serent Capital added.
Shea & Company served as a financial advisor while Choate, Hall & Stewart acted as legal advisor for Pondera Solutions.