FlexTecs, a provider of recovery audit, contract compliance, and payment accuracy solutions, announced on Jan. 22 it received a strategic investment from Cohere Capital, a Boston-based private equity firm focused on investing in differentiated technology and tech-enabled services companies.
Financial terms of the deal weren’t disclosed.
The Atlanta-based company said the strategic investment positions it to drive even further value for clients, expand its services and software offering, and accelerate its next phase of growth while also preserving the leadership, culture, and operating model that have defined FlexTecs since its founding in 2006.
The existing FlexTecs leadership team will continue to run the business, with strategic guidance and resources from Cohere Capital and its board advisors.
“This partnership comes at a time of tremendous momentum for FlexTecs,” Tom Cook, the company’s co-founder and CEO, said in a statement. “We’ve doubled the size of the business over the past three years and have grown our global team to more than 600 employees. Our differentiated model has created a strong foundation and continues to drive market share gains and lasting value for our clients.”
Through its services and technology, FlexTecs says it reviews more than $1 trillion in client transactions and recovers or prevents over $1 billion incorrect payments annually, resulting in direct savings for its clients.
“FlexTecs was founded to disrupt the audit recovery industry with a technology-first focus to deliver unparalleled speed, agility, and value to its clients,” the company said in a media release.
FlexTecs says its audit team leverages its proprietary technology platform to perform in-year audits, pulling recoveries forward to near real time and offering preventative recovery solutions. This differentiated business model increases recoveries and accelerates cash collections for its clients.
With a revenue compound annual growth rate of 25% since 2020, the investment from Cohere will enable FlexTecs to accelerate its growth trajectory, including strengthening its core recovery audit and contract compliance services while expanding the capabilities of its proprietary SaaS platform, FlexTrap.
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“Our tech-enabled services business remains foundational to who we are,” Cook said. “FlexTrap is in the midst of a strategic expansion, building on the deep expertise we’ve developed through years of recovery audits, turning real-world insights into software that helps clients optimize accounts payable, reclaim valuable time, and prevent errors rather than just repeatedly recover them.”
FlexTrap helps prevent payment errors before they occur and automates complex statement reconciliations that often remain manual even in modern accounts payable environments.
Cohere Capital brings experience supporting companies through similar periods of expansion, including scaling SaaS and technology offerings that are part of larger services companies. As part of the partnership, Cohere will support FlexTecs’ growth strategy, including continued service and technology innovation, geographic expansion, and potential strategic acquisitions.
“We are excited to partner with Tom and the rest of the FlexTecs leadership team to build on the momentum they have generated over the last several years. It is clear that a key reason for their success is the experienced team and culture that they have purpose-built,” Daniel Gedney, co-founder and partner at Cohere Capital, said in a statement. “FlexTecs was founded with technology at its core and that has created tremendous differentiation in the market versus their competitors, which we only expect to accelerate as AI continues to advance.”
More information about FlexTecs can be found here.
Photo credit: FlexTecs via LinkedIn
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